ABC Company had the following inventory balances for Year 2:Beginning BalanceEnding BalanceRaw Materials$470$160Work In Process$420$310Finished Goods$450$1150During Year 2, ABC Company had the following transactions related to inventory:Purchased S220 of raw materials• Incurred direct labor costs of $180• Allocated manufacturing overhead costs of $90• Sold inventory to customers for $700 that cost $210 to makeWhat was ABC Company's Total Manufacturing Cost during Year 2?

Name: ABC Company had the following inventory balances for Year 2:Beginning
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Description: ABC Company had the following inventory balances for Year 2:Beginning BalanceEnding BalanceRaw Materials$470$160Work In Process$420$310Finished Goods$450$1150During Year 2, ABC Company had the following transactions related to inventory:Purchased S2

SOLUTION- TOTAL MANUFACTURING COST= IT IS THE TOTAL EXPENSES INCURRED BY A FIRMS PRODUCTION PROCESS…

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ABC Company had the following inventory balances for Year 2: Beginning Balance Ending Balance Raw Materials $470 $160 Work In Process $420 $310 Finished Goods $450 $1150 During Year 2, ABC Company had the following transactions related to inventory: • Purchased $220 of raw materials • Incurred direct labor costs of $180 • Allocated manufacturing overhead costs of $90 • Sold inventory to customers for $700 that cost $210 to make

ABC Company had the following inventory balances for Year 2: Beginning Balance Ending Balance Raw Materials $470 $160 Work In Process $420 $310 Finished Goods $450 $1150 During Year 2, ABC Company had the following transactions related to inventory: • Purchased $220 of raw materials • Incurred direct labor costs of $180 • Allocated manufacturing overhead costs of $90 • Sold inventory to customers for $700 that cost $210 to make

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...

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For each of the following independent situations, calculate the missing values: 1. The Belen plant purchased 78,300 of direct materials during June. Beginning direct materials inventory was 2,500, and direct materials used in production were 73,500. What is ending direct materials inventory? 2. Forster Company produced 14,000 units at an average cost of 5.90 each. The beginning inventory of finished goods was 3,422. (The average unit cost was 5.90.) Forster sold 14,120 units. How many units remain in ending finished goods inventory? 3. Beginning work in process (WIP) was 116,000, and ending WIP was 117,300. If total manufacturing costs were 349,000, what was the cost of goods manufactured? 4. If the conversion cost is 84 per unit, the prime cost is 55, and the manufacturing cost per unit is 105, what is the direct materials cost per unit? 5. Total manufacturing costs for August were 412,000. Prime cost was 64,000, and beginning WIP was 76,000. The cost of goods manufactured was 434,000. Calculate the cost of overhead for August and the cost of ending WIP.
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.
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