Beautiful Company had the following purchases and issuance during the month of January 2021:January 1January 3January 5January 10January 12January 26January 30Beginning balance: 750 unit @ 20Purchased 500 units @ 19.50Issued 800 unitsPurchased 500 units @ 21.50Issued 500 unitsPurchased 300 units @ 22Issued 200 unitsUsing FIFO, how much is the Raw Materials Inventory ending? Agua Corporation applies the just-in-time philosophy in its materials procurement and productionsystems. It uses Raw and in Process account to keep track of its materials and backflushed materialsat the date goods are completed. The following selected transactions occurred in one of its productsin the month of January 2020:Raw materials purchases,Direct materials12,000 lbs. @ P10, P126,000.P4,400Indirect materialsProduction costs with 3,000 unitsOther conversion costsBeginning and ending balances:P62,000RIPFGBeginning balancesDirect MaterialsConversion costs2,0009002,900(1,500)(600)2,1003,1001,2004,300(1,500)(2,200)3,700TotalEnding balancesDirect MaterialsConversion costsTotalUsing the company's backflush accounting system, how much is the direct materials used to bebackflushed?

Name: Beautiful Company had the following purchases and issuance during the
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Description: Beautiful Company had the following purchases and issuance during the month of January 2021:January 1January 3January 5January 10January 12January 26January 30Beginning balance: 750 unit @ 20Purchased 500 units @ 19.50Issued 800 unitsPurchased 500 u

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Beautiful Company had the following purchases and issuance during the month of January 2021: January 1 January 3 January 5 January 10 January 12 January 26 January 30 Beginning balance: 750 unit @ 20 Purchased 500 units @ 19.50 Issued 800 units Purchased 500 units @ 21.50 Issued 500 units Purchased 300 units @ 22 Issued 200 units Using FIFO, how much is the Raw Materials Inventory ending?

Beautiful Company had the following purchases and issuance during the month of January 2021: January 1 January 3 January 5 January 10 January 12 January 26 January 30 Beginning balance: 750 unit @ 20 Purchased 500 units @ 19.50 Issued 800 units Purchased 500 units @ 21.50 Issued 500 units Purchased 300 units @ 22 Issued 200 units Using FIFO, how much is the Raw Materials Inventory ending?

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 18E: For E2-17, prepare any journal entries that would have been different if the only trigger points had...

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Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
For E2-17, prepare any journal entries that would have been different if the only trigger points had been the purchase of materials and the sale of finished goods. Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
Vexar manufactures nails. Manufacturing is a one-step process where the nails are forged. This is the information related to this years production: Â Ending inventory was 100% complete as to materials and 70% complete as to conversion, and the total materials cost is $115,080 and the total conversion cost is $72,072. Using the weighted-average method, what are the unit costs if the company transferred out 34,000 units? Using the weighted-average method, prepare the companys process cost summary for the month.
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Self-Construction Olson Machine Company manufactures small and large milling machines. Selling prices of these machines range from 35,000 to 200,000. During the 5-month period from August 1, 2019, through December 31, 2019, Olson manufactured a milling machine for its own use. This machine was built as part of the regular production activities. The project required a large amount of time front planning and supervisory personnel, as well as that of some of the companys officers, because it was a more sophisticated type of machine than the regular production models. Throughout the 5-month period, Olson charged all costs directly associated with the construction of the machine to a special account entitled Asset Construction Account. An analysis of the charges to this account as of December 31, 2019, follows: Olson allocates factory overhead to normal production as a percent of direct labor dollars as follows: Olson uses a flat rate of 40% of direct labor dollars to allocate general and administrative overhead. During the machine testing period, a cutter head malfunctioned and did extensive damage to the machine table and one cutter housing. This damage was not anticipated and was the result of an error in the assembly operation. Although no additional raw materials were needed to make the machine operational after the accident, the following labor for rework was required: Olson has included all these labor charges in the asset construction account. In addition, it included in the account the repairs and maintenance charges of 1,340 that it incurred as a result of the malfunction. Required: 1. Compute, consistent with GAAP and common practice, the amount that Olson should capitalize for the milling machine as of December 31, 2019, when it declares the machine operational. 2. Next Level Identify the costs you included in Requirement 1 for which there are acceptable alternative procedures. Describe the alternative procedure(s) in each case.
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