Question 2: ABC Company has the following information for the period ended 31 December 2020. Direct material purchased Direct labor Factory maintenance Power and heat- factory Direct Expenses Indirect factory labor Freight In Depreciation - Factory Advertisement expenses Inventories, 1 January 2020: OMR 680000 OMR 200000 OMR 29000 OMR 18500 15 % of the direct labor cost OMR 25000 OMR 7000 OMR 33300 OMR 8500 Direct Material OMR 45700 Work-in-process Finished goods OMR 50000 OMR 75000 returns of Purchase direct materials OMR 7400 Depreciation-administrative OMR 13800 Inventories, 31 December 2020: Material OMR 19000 Work-in process Finished goods OMR 32000 3000 Units Total Production Units 35000 units Salary - administrative OMR 5000 Commission – selling OMR 15800 Finished goods are valued at the current unit manufacturing cost. You are required to prepare: I. Manufacturing Statement II. Calculate unit production cost.

Question 2: ABC Company has the following information for the period ended 31 December 2020. Direct material purchased Direct labor Factory maintenance Power and heat- factory Direct Expenses Indirect factory labor Freight In Depreciation - Factory Advertisement expenses Inventories, 1 January 2020: OMR 680000 OMR 200000 OMR 29000 OMR 18500 15 % of the direct labor cost OMR 25000 OMR 7000 OMR 33300 OMR 8500 Direct Material OMR 45700 Work-in-process Finished goods OMR 50000 OMR 75000 returns of Purchase direct materials OMR 7400 Depreciation-administrative OMR 13800 Inventories, 31 December 2020: Material OMR 19000 Work-in process Finished goods OMR 32000 3000 Units Total Production Units 35000 units Salary - administrative OMR 5000 Commission – selling OMR 15800 Finished goods are valued at the current unit manufacturing cost. You are required to prepare: I. Manufacturing Statement II. Calculate unit production cost.

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter20: Process Cost Systems

Section: Chapter Questions

Problem 20.1APR: Entries for process cost system Pori Ormond Carpel Company manufactures carpets. Fiber is placed in...

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Entries for process cost system Pori Ormond Carpel Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpel hacking is added al the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories: Finished Goods 62,000 Work in ProcessSpinning Department 35,000 Work in ProcessTufting Department 28,500 Materials 17,000 Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: a Materials purchased on account 500,000 b Materials requisitioned for use FiberSpinning Department 275,000 Carpet backingTufting Department 110,000 Indirect materialsSpinning Department 46,000 Indirect materialsTufting Department 39,500 c. Labor used Direct laborSpinning Department 185,000 Direct laborTufting Department 98,000 Indirect laborSpanning Department 18,500 Indirect laborTufting Department 9,000 d Depreciation charged on fixed assets: Spinning Department 12,500 Tufting Department 8,500 e. Expired prepaid factory insurance: Spinning Department 2,000 Tufting Department 1,000 f. Applied factory overhead Spinning Department 80,000 Tufting Department 55,000 g Production costs transferred from Spinning Department to Tufting Department 547,000 h Production costs transferred from Tufting Department to Finished Goods 807,200 i. Cost of goods sold during the period 795,200 Instructions 1. Journalize the entries to record the operations, identifying each entry by letter. 2. Compute the January 31 balances of the inventory accounts. 3. Compute the January 31 balances of the factory overhead accounts.
Question 2: ABC Company has the following information for the period ended 31 December 2020. Direct material purchased OMR 360000 Direct labor OMR 200000 Factory maintenance OMR 29000 Power and heat—factory OMR 18500 Direct Expenses 15 % of the direct labor cost Indirect factory labor OMR 21000 Freight In OMR 7000 Depreciation - Factory OMR 22300 Advertisement expenses OMR 8500 Inventories, 1 January 2020: Direct Material OMR 41700 Work-in-process…
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Goggles Company has the following information for the year 2019:Total manufacturing costs .....................P5,621,000Total nonmanufacturing costs ............... 2,370,000Factory overhead .................................... 1,859,400Direct materials used ............................. 1,506,200Indirect materials used .......................... 564,900 1.How much is the prime cost for the year? explanation 2.Compute for the conversion cost? explanation 3.Calculate direct labor employed for the year? explanation
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1. Cabundoc Manufacturing provides the following information for 2020. The ending work in process is? Ending Work in process = Opening raw materials inventory 70000 Closing raw materials inventory 60000 Opening work in process inventory 150000 Raw materials available for use 410000 Direct labor cost 300000 Factory overhead 337500 Cost of goods manufactured 836000 2. The following information was reported by AS Company for the month of September, 2019. Assuming that mark-up is 100% on the cost price, and the total operating expenses is 256000, the net income before tax is? Net income before tax = September 1 September 30 Direct materials 80000 100000 Work in process finished goods 50000 70000 Finished goods 120000 140000 Direct labor cost 240000 Factory overhead 216000 Cost of goods sold 766000 3. The total work in process is 330000. The beginning work in process is 30000…
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