This topic is about Cost Accounting. Please check the picture for the problem.Requirement: Determine the followingNet IncomeDirect Product CostIndirect Product CostConversion CostThank you! You are given the following information from Alexandria Mfg Company as of December 31,202A;Sales, P205,000; selling and administrative expenses, P83,000; purchases of rawmaterials, P20,0003; direct labor, P15,000; factory overhead, P32,000.The inventories are:1. Raw materials, beg., P7,000; end, P5,0002. Work in process, beg., P14,000; end, P11,0003. Finished goods, beg., P15,000; end, P19,000

= Sales - purchases of raw materials- opening inventories + closing inventories - direct labor -…

Answered: pic is about Cost Accounting. Please…

pic is about Cost Accounting. Please check the picture for the problem. Requirement: Determine the following Net Income Direct Product Cost Indirect Product Cost Conversion Cost

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 2SEA: SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Maupin...

See similar textbooks

Related questions

Q: Which of the following major activities of a business will result in product costs? Multiple Choice…

A: Manufacturing is a process of production of goods for sale. It involves conversion of raw material…

Q: Absorption costing and marginal costing are product costing methods used in organizations. Briefly…

A: Introduction:- Absorption costing, often known as "full costing," is a managerial accounting…

Q: Product costs are expensed Group of answer choices When the product unit cost is calculated. When…

A: Solution: Product costs is capitalized in inventory when same is produced. However when products are…

Q: Which of the following cost is included in cost of goods sold? customer service cost manufacturing…

A: In layman's language, the Cost of goods sold is nothing but the total cost incurred to produce a…

Q: I need support with the statement of cost of goods manufactured and he income statement. Please…

A: Raw materials: It is the basic input required to manufacture the finished products. The raw…

Q: a. Prepare an income statement according to the absorption costing concept. b. Prepare an income…

A: The income statement represents the net income where the expenses are deducted from the revenues of…

Q: in intended application between sales life-cycle analysis and life-cycle costing

A: The strategic pricing depends on the product price which it supported the worth it charges to the…

Q: Product Cost from Period Cost. Please help me I really need the answer, clear explanation please,…

A: The cost function is a function that is used to show how production expense will change at different…

Q: a difference in cost-plus pricing and target costing is that target costing starts with the price…

A: Target costing says that first target selling price is calculated, then markup is deducted from…

Q: Suppose that your accounting textbook is the cost object of concern. The paper used to print the…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.

Q: a) Use activity-based costing to estimate the cost of preparing: i A wage and salary tax return. ii…

A: Activity-based costing (ABC): Activity based costing (ABC) framework was created to manage the…

Q: Compute cost of goods manufactured. using a formal schedule of cost of good manufactured then…

A: Cost of goods manufactured shows the total costs incurred on the production of goods. It includes…

Q: What problems can arise if you use the results of your full costing approach for decision…

A: Below is the answer

Q: Which statement is TRUE? An absorption costing income statement calculates gross profit; a variable…

A: Absorption costing: Its also called as Full costing. Absorption costing is used for the purpose of…

Q: In the Interesting box, write down how each costing method would contribute in achieving the main…

A: First-in First-out method (FIFO) method: It is a method of pricing the issues of materials, in the…

Q: Which of the following major activities of a business will result in product costs? Multiple Choice…

A: The costs that can be directly attributable to the produced goods are called product costs.

Q: Consider the following statements about absorption costing and variable costing: Variable costing…

A: Absorption costing and variable costing are managerial accounting and financial reporting cost…

Q: Which of the following would not be a period cost? Group of answer choices Research and development…

A: Solution: Period cost is the cost that is expensed in the income statement and same is not…

Q: Explain how variable costing system costing is used to calculate the cost of goods manufactured.…

A: (1) Variable costing system The variable costs are included in the product cost in variable…

Q: When using the total cost concept of applying the cost-plus approach to product pricing, what is…

A: Answer In total cost concept of applying cost plus approach of product pricing , the total cost…

Q: Explain the concept of customer profitability analysis. Give examples of cost drivers used in this…

A: Customer Profitability Analysis is a technique of noting down and analysing various costs and…

Q: What could be the reason for which you can have different income figures in absorption costing and…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Compute It can use ABC information for what decisions? a. Cost cutting b. Pricing c. Product mix d.…

Q: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

Q: What is the difference of price and cost? From (a) point of view of a customer; and (b) point of…

A: For businesses, the term "cost" refers to the expenditure associated with producing a something or…

Q: . Which of the following is the best definition of a variable cost? A. A variable cost is one which…

A: Variable costs are the costs that vary on the basis of the level of output. They are determined per…

Q: Compute for the cost of WIP, end using Average costing.

A: Average costing: Weighted-average costing used to value the cost of finished goods and ending work…

Q: Briefly discuss the different cost classifications which are relevant for a business like Raajje…

A: Different cost classifications are: Fixed cost and variable cost Direct and indirect cost

Q: Knowing how costs behave to change in the level of activity is useful to management for all the…

A: Customer demand cannot be predicted by paying attention to how costs change when activity changes.…

Q: ost, sunk costs or opportunity costs. Keep in mind that one cost can be fall into different…

A: 1) Predicting cost behavior cost classifications Every company incurred the costs in order to…

Q: Google uses variable costing for several business decisions. How can variable costing income be…

Q: Winters, Inc. is preparing financial statements to be distributed to investors and creditors. The…

A: Definition: Absorption costing: It refers to the method of product costing in which the price of…

Q: For each of the following items, identify which of the managementaccounting guidelines applies:…

A: Planning and Control Decision: Planning decisions involves selecting organization goals, estimating…

Q: A range of costing methods have been considered in the module. Which of the following statements is…

A: Following is the answer to the given question

Q: В. Explain the following: Product costs and Period costs and one example of each. Distinguish…

A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…

Q: What is absorption costing and marginal costing in the context of overhead costs? Discuss the…

A: The difference between Absorption Costing and Marginal Costing is discussed hereunder :

Q: The purpose of costing are as follows EXCEPT: a) Value inventory b) Record costs c) Price products…

A: The purpose of costing is. 1. To Formulate cost of a product 2. To facilitate decision making 3. To…

Q: The objective of management, under absorption costing, is that each product recovers its full cost…

A: The management is interested in that product which is giving profit in return on investment.it means…

Q: Which type of income statements, Contribution Format or Traditional Format should be used to…

A: Contribution Format income statemnets should be used to identify relevant costs. A traditional…

Q: How would you define fixed and variable product costs? How are these costs used in determining the…

A: Cost of production is the total cost involved in producing a particular volume of products. These…

Q: Which one of the following is correct about variable costing systems? Select one: a. Normally result…

A: Under the variable costing system, the product cost includes direct material, direct labor, direct…

Q: In Classification Of Cost, What Is A Business Situational Example of the ff:

A: Cost refers to the amount spent by the business on the purchase of raw materials, supplies,…

Q: With respect to cost classifications for manufacturers:a. What is the total manufacturing cost?b.…

A: For a manufacturer, Total manufacturing cost = Direct Material Cost + Direct Labour Cost + Variable…

Q: a) Calculate the product cost using a Traditional and ABC approach. b) Discuss and analyse…

A: Cost per unit under Traditional costing system: Particulars Product A Product B Product C Product…

Q: Show your solution in good accounting form How much is the cost of goods manufactured?

A: Cost of goods manufactured means total costs incurred in the business for manufacturing or…

Q: When pricing a product or service, managers must consider which of the following? a. Only period…

Q: An analyst is constructing a simple model to determine the gross and net profit of a product, given…

A: Gross profit means the difference between the sale revenue and cost of goods sold where as net…

Question

This topic is about Cost Accounting. Please check the picture for the problem.

Requirement: Determine the following

Net Income
Direct Product Cost
Indirect Product Cost
Conversion Cost

Thank you!

You are given the following information from Alexandria Mfg Company as of December 31,
202A;
Sales, P205,000; selling and administrative expenses, P83,000; purchases of raw
materials, P20,0003; direct labor, P15,000; factory overhead, P32,000.
The inventories are:
1. Raw materials, beg., P7,000; end, P5,000
2. Work in process, beg., P14,000; end, P11,000
3. Finished goods, beg., P15,000; end, P19,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Net Income = 137,000

VIEW

Step 2 Direct Product Cost = P35000

VIEW

Step 3 Indirect cost P115,000

VIEW

Step 4 Conversion cost = P130000

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
Glasson Manufacturing Co. produces only one product. You have obtained the following information from the corporations books and records for the current year ended December 31, 2016: a. Total manufacturing cost during the year was 1,000,000, including direct materials, direct labor, and factory overhead. b. Cost of goods manufactured during the year was 970,000. c. Factory Overhead charged to Work in Process was 75% of direct labor cost and 27% of the total manufacturing cost. d. The beginning Work in Process inventory, on January 1, was 40% of the ending Work in Process inventory, on December 31. e. Material purchases were 400,000 and the ending balance in Materials inventory was 60,000. No indirect materials were used in production. Required: Prepare a statement of cost of goods manufactured for the year ended December 31 for Glasson Manufacturing. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information.)
During March, the following costs were charged to the manufacturing department: $14886 for materials; $14,656 for labor; and $13,820 for manufacturing overhead. The records show that 30,680 units were completed and transferred, while 2,400 remained in ending inventory. There were 33,080 equivalent units of material and 31,640 of conversion costs. Using the weighted-average method, what is the cost of inventory transferred and the balance in work in process inventory?
Orinder Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 275,800, direct labor cost was 153,000, and overhead cost was 267,300. There were 25,000 units produced. Unit manufacturing cost (rounded to the nearest cent) is a. 28.40 b. 27.98 c. 34.95 d. 27.55
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)?
A production department within a company received materials of $7,000 and conversion costs of $5,000 from the prior department. It added material of $78400 and conversion costs of $47000. The equivalent units are 5,000 for material and 4,000 for conversion. What is the unit cost for materials and conversion?
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
The books of Petry Products Co. revealed that the following general journal entry had been made at the end of the current accounting period: The total direct materials cost for the period was $40,000. The total direct labor cost, at an average rate of $10 per hour for direct labor, was one and one-half times the direct materials cost. Factory overhead was applied on the basis of $4 per direct labor hour. What was the total actual factory overhead incurred for the period? (Hint: First solve for direct labor cost and then for direct labor hours.)
The records of Burris Inc. reflect the following data: Work in process, beginning of month2,000 units one-half completed at a cost of 1,250 for materials, 675 for labor, and 950 for overhead. Production costs for the monthmaterials, 99,150; labor, 54,925; factory overhead, 75,050. Units completed and transferred to stock38,500. Work in process, end of month3,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost.
The records of Stone Inc. reflect the following data: Work in process, beginning of month4,000 units one-fourth completed at a cost of 2,500 for materials, 1,400 for labor, and 1,800 for overhead. Production costs for the monthmaterials, 130,000; labor, 70,000; and factory overhead, 82,000. Units completed and transferred to stock45,000. Work in process, end of month5,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)