What is the cost of goods manufactured for the current year? Bloom Company accumulated the following quarterly cost data for the current year.Raw materials-beginning inventoryPurchases90,000 units @ P7.0075,000 units @ P8.00120,000 units @ P8.50The company transferred 195,000 units of raw materials to work in process during the year.Work in process - beginning inventoryDirect labor, net of deduction of 200,000Manufacturing overheadWork in process - ending inventory50,000 units @ P14.002,900,0002,950,00048,000 units @ P15.00The company uses the FIFO method for valuing inventory. What is the cost of goodsmanufactured for the current year?

Solution: Direct materials used using FIFO = (90000*P7) + (75,000*P8) + (30000*P8.50) = P1,485,000

Bloom Company accumulated the following quarterly cost data for the current year Raw materials-beginning inventory Purchases 90,000 units @ P7.00 75,000 units @ P8.00 120,000 units @ P8.50 The company transferred 195,000 units of raw materials to work in process during the y Work in process - beginning inventory Direct labor, net of deduction of 200,000 Manufacturing overhead Work in process - ending inventory 50,000 units @ P14.00 2,900,000 2,950,000 48,000 units @ P15.00

Bloom Company accumulated the following quarterly cost data for the current year Raw materials-beginning inventory Purchases 90,000 units @ P7.00 75,000 units @ P8.00 120,000 units @ P8.50 The company transferred 195,000 units of raw materials to work in process during the y Work in process - beginning inventory Direct labor, net of deduction of 200,000 Manufacturing overhead Work in process - ending inventory 50,000 units @ P14.00 2,900,000 2,950,000 48,000 units @ P15.00

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 27E: Selected information concerning the operations of a company for the year ended December 31 is as...

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