1. The comparative inventory data for JPE Manufacturing Corporation for the yearended December 31, 2018 is summarized below:January 1P 495,000138,000127,000184,000December 31Materials controlWork in process- materialWork in process- laborWork in process- overheadP 513,000132,000136,000161,000Finished goods control525,000487,000During the year 2018, the corporation completed, among others, the followingtransactions:a) Purchases, all on account, direct materials, P2,100,000; indirectmaterials,P400,000.b) The total materials requisitioned for use during the year includedP360,000 for indirect materials, P42,000 for shipping of finishedgoods deliveries, and P35,000for general office repairs.c) The payroll for the year was broken down as follows: direct labor,P1,650,000, indirect labor, P550,000; sales salaries, P840,000,and office salaries, P460,000.d) The payroll was vouchered and analysis disclosed the followingdetails.WIH TaxP80,000 P40,000 P12,000 P38,000 P6,00040,00060,00050,000sssMedicare HDMFECCDirect laborIndirect laborSales salariesOffice salariesGrossP1,650,000550,000840,000460,00012,50020,00011,000e) The corporation's share of the payroll taxes, SsS contribution,3,0008,0005,00012,000 1,50022,000 4,00014,000 2,500 Office salaries460,000e) The corporation's share of the payroll taxes, SSS contribution,Medicare premium, HDMF premiums and employer compensationcontribution was appropriately recorded. (Assume the sameamount of SSS, Medicare and HDMF premiums was contributedby the employer.)f) Other manufacturing expenses vouchered amounted to P920,000and depreciation charges were P250,000 on plant assets,P120,000 on delivery trucks and P80,000 on office equipment.g) Manufacturing expenses were applied to production atpredetermined rate equal to 130 % of direct labor cost.h) Completed goods were transferred to the finished goodswarehouse.50,00011,0005,00014,000 2,500) All sales are made on terms 2/10,n/30; billing price at 150% of cost.Required:1. Prepare entries in general journal form, to record the above transaction of JPEManufacturing Corporation for the year 2018.2. Prepare the statement of cost of goods manufactured and sold for the yearended Dec 31, 2018.3. Determine the following amounts:a. Prime costb. Conversion costc. Product costd. Period cost

SOLUTION: (a). Schedule of cost of goods manufactured: Beginning raw material 10000 Raw…

1. The comparative inventory data for JPE Manufacturing Corporation for the year ended December 31, 2018 is summarized below: January 1 P 495,000 138,000 127,000 184,000 December 31 P 513,000 132,000 136,000 161,000 Materials control Work in process- material Work in process- labor Work in process- overhead

1. The comparative inventory data for JPE Manufacturing Corporation for the year ended December 31, 2018 is summarized below: January 1 P 495,000 138,000 127,000 184,000 December 31 P 513,000 132,000 136,000 161,000 Materials control Work in process- material Work in process- labor Work in process- overhead

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 13P: Webster Company uses backflush costing to account for its manufacturing costs. The trigger points...

See similar textbooks

Similar questions

The following inventory data relate to Edwards, Inc.: Calculate the following for the year: a. Direct materials purchased. b. Direct labor costs incurred. c. Cost of goods sold. d. Gross profit.
What are the total costs to account for if a companys beginning inventory had $231,432 in materials, $186,450 in conversion costs, and added direct material costs ($4,231,392), direct labor ($2,313,392), and manufacturing overhead ($1,156,696)?
Inventory Accounts for a Manufacturing Company Fujita Company produces a single product. Costs accumulated at the end of the period are as follows: Assume the beginning raw materials inventory was 62,800, the beginning finished goods inventory was 118,400, and there was no beginning work-in-process inventory. Required: Compute the closing account balances of each of the three inventory accounts: Raw Materials, Work in Process, and Finished Goods.
Inventory costing methods The purchases and issues of rubber gaskets (Materials Ledger #11216) as shown in the records of Hillsdale Corp. for November follow: Required: 1. Complete a materials ledger account similar to Figure 2-10 (the On Order columns should be omitted) for each of the following inventory costing methods, using a perpetual inventory system: a. FIFO b. LIFO c. Weighted average (carrying unit prices to five decimal places) 2. For each method, prepare a schedule that shows the total cost of materials transferred to Work in Process and the cost of the ending inventory. 3. If prices continue to increase, would you favor adopting the FIFO or the LIFO method? Explain. 4. When prices continue to rise, what is the effect of FIFO versus LIFO on the inventory balance for materials reported in the balance sheet? Discuss.
Webster Company uses backflush costing to account for its manufacturing costs. The trigger points for recording inventory transactions are the purchase of materials, the completion of products, and the sale of completed products. Required: 1. Prepare journal entries, if needed, to account for the followingtransactions. a. Purchased raw materials on account, 135,000. b. Requisitioned raw materials to production, 135,000. c. Distributed direct labor costs, 20,000. d. Incurred manufacturing overhead costs, 80,000. (Use Various Credits for the credit part of the entry.) e. Cost of products completed, 235,000. f. Completed products sold for 355,000, on account. 2. Prepare any journal entries that would be different from theabove, if the only trigger points were the purchase of materialsand the sale of finished goods.
LIFO costing Using last-in, first-out perpetual inventory costing and the information presented in E2-7, compute the cost of materials used and the cost of the July 31 inventory.
Using first-in, first-out perpetual inventory costing and the following information, determine the cost of materials used and the cost of the July 31 inventory:
The following information is taking from Wei Min Enterprise for the year ended 31December 2020: Particulars RM Inventory at 1 January 2020:Raw materialsWork in progressFinished goods 25,40031,10023,260Purchases : raw materials 91,535Carriage on raw materials 1,960Direct labour 84,208Office salaries 33,419Rent 5,200Office lighting and heating 4,420Depreciation:Works machineryOffice equipment 10,2002,300Sales 318,622Factory fuel and power 8,120 Prepared by: Puan Siti Nor Junita Mohd Radzi Additional information:i. Rent is to be apportioned: factory 3⁄4; office 1⁄4ii. Inventory at 31 December 2020 was:a. Raw materials RM28,900b. Work in progress RM24,600c. Finished goods RM28,840Required: b) Prepare statement of comprehensive income for the year ended 31 December 2020.
The following inventory information is available for Narcisa Manufacturing Corporationfor the year: Beginning Ending Inventories:Raw materials P17,000 P19,000Work in process 9,000 14,000Finished goods 11,000 8,000Total P37,000 P41,000 In addition, the following transactions occurred:a. Raw materials purchased on account, P75,000.b. Incurred factory labor, P80,000, all is direct labor. (Credit Factory Wages Payable).c. Incurred the following overhead costs during the year: Utilities P6,800, Depreciation onmanufacturing machinery P8,000, Manufacturing machinery repairs P6,200, Factoryinsurance P9,000 (Credit Accounts Payable and Accumulated Depreciation).d. Assigned P80,000 of factory labor to…
E1-9 Determining materials, labor, and cost of goods sold The following inventory data relate to Edwards, Inc. INVENTORIES ENDING BEGINNING Finished goods $82,294 $120,698 Work in process $87,780 $76,808 Direct materials $104,239 $98,753 Revenues and Cost for the period: Sales $987,525 Cost of goods available for sale $850,369 Total manufacturing costs $740,644 Factory overhead $192,019 Direct materials used $224,936 Calculate the following for the year:a. Direct materials purchasedb. Direct labor costs incurredc. Cost of goods soldd. Gross profit (Hint Answers to subsequent parts may require using solutions from earlier parts)
Please complete the Income statement Calculation of Direct Materials Used (Analyze Raw Materials Account) Beginning Raw Materials Inventory 2,373.75 Plus: Purchases of Direct Materials, Freight-in, Duties 26111.25 Materials Available for Use 28485 Less: Ending Raw Materials Inventory 18,041.32 <<<To balance sheet Direct Materials Used 10443.68 Calculation of Cost of Goods Manufactured (Analyze WIP Inventory) Beginning WIP Inventory 0 Plus Manufacturing Costs Incurred: 355,428.68 Direct Materials Used 10443.68 Direct Labor 135,000.00 Manufacturing Overhead 191,943.68 Total Manufacturing Costs to Account For 337,387.36 Less: Ending WIP Inventory 18,041.32 <<<To balance sheet Cost of Goods Manufactured 319346.04 Calculation of Cost of Goods Sold (Analyze Finished Goods Inventory)…
XYZ Co. has the following information: Inventory at 1st Jan 2020 Inventory at 31st Dec 2020 Raw Materials Inventory OMR 20,000 OMR 30,000 Work in Process Inventory OMR 18,000 OMR 15,000 Finished Goods Inventory OMR 30,000 OMR 20,000 Additional information for the year is as follows: Raw materials purchases OMR 100,000 Direct labor OMR 75,000 Manufacturing overhead applied OMR 85,000 Manufacturing overhead Actual OMR 80,000 Indirect materials OMR 0 Compute the adjusted cost of goods sold.