The accounting records for 2017 of DB Co. showed the following: Decrease in raw materials inventory P 45,000 Decrease in finished goods inventory Raw materials purchased Direct labor payroll Factory overhead Freight-out 150,000 1,290,000 600,000 900,000 135,000 The cost of raw materials used for the period amounted to: O P1,245,000 O P1,290,000 P1,335,000 O P1,380,000

The accounting records for 2017 of DB Co. showed the following: Decrease in raw materials inventory P 45,000 Decrease in finished goods inventory Raw materials purchased Direct labor payroll Factory overhead Freight-out 150,000 1,290,000 600,000 900,000 135,000 The cost of raw materials used for the period amounted to: O P1,245,000 O P1,290,000 P1,335,000 O P1,380,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 1E: Inventory Accounts for a Manufacturing Company Fujita Company produces a single product. Costs...

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Inventory Accounts for a Manufacturing Company Fujita Company produces a single product. Costs accumulated at the end of the period are as follows: Assume the beginning raw materials inventory was 62,800, the beginning finished goods inventory was 118,400, and there was no beginning work-in-process inventory. Required: Compute the closing account balances of each of the three inventory accounts: Raw Materials, Work in Process, and Finished Goods.
Renfro, Inc. was franchised on January 1, 2016. At the end of its third year of operations, December 31, 2018, management requested a study to determine what effect different materials inventory costing methods would have had on its reported net income over the three-year period. The materials inventory account, using LIFO, FIFO, and weighted average, would have had the following ending balances: a. Assuming the same number of units in ending inventory at the end of each year, were material costs rising or falling from 2016 to 2018? b. Which costing method would show the highest net income for 2017? c. Which method would show the lowest net income for 2018? d. Which method would show the highest net income for the three years combined?
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.
The accounting records for 2017 of DB Co. Showed the following: Decrease in raw materials inventory 45,000 Decrease in finished goods inventory 150,000 Raw materials purhased 1,290,000 Direct labor payroll 600,000 Factory overhead 900,000 Freight-out 135,000 The cost of raw materials used for the period amounted to:
The accounting records for 2022 of Natural Co. showed the following: Increase in raw materials inventory, P45,000; Decrease in finished goods inventory, P150,000; Raw materials purchases, P1,290,000; Direct labor payroll, P600,000; Factory overhead, P900,000; Decrease in work in process inventory, P80,000. How much is the cost of goods manufactured?
The following information were taken from the accounting records of BLUE Corporation for the year ended December 31, 2021: Decrease in finished goods inventory - P700,250; Increase in raw materials inventory - P368,000; Freight out - P520,000; Factory overhead - P6,000,000; Direct labor - P4,000,000; Raw materials purchased - P8,600,000; Freight in - P842,100. There was no work in process inventory at the beginning or at the end of the year.
The following information were taken from the accounting records of BLUE Corporation for the year ended December 31, 2021: Decrease in finished goods inventory - P700,250; Increase in raw materials inventory - P368,000; Freight out - 520,000; Factory overhead - 26,000,000; Direct labor - 24,000,000; Raw materials purchased - 28,600,000; Freight in - 2842,100. There was no work in process inventory at the beginning or at the end of the year. What is the cost of goods sold?
At the end of 2018, Furry Balls Co. had the following account balances after factory overhead had been closed to manufacturing overhead control: Manufacturing overhead control, PP20,000 dr. Cost of goods sold, P384,000 dr. Finished goods, P96,000 dr. Work in process, P160,000 dr. Raw materials, P160,000 dr. Case 1: any under- or over-applied overhead is considered material. What is the adjusted balance of finished goods inventory after disposing of the under-or over-applied overhead?
The following information was taken from H Company's accounting records for the year December 31, 2008: Increase in raw materials inventory P 15,000 Decrease in finished goods inventory 35.000 Raw materials purchased O 430.000 Direct labor cost 200.000 Factory overhead control 260.000 Freight-in 45.000 There was no work in process inventory at the beginning or end of the year. H's 2008 cost of goods sold is if FOH is applied at 140% of labor costs:
At the end of 2018, Furry Balls Co. had the following account balances after factory overhead had been closed to manufacturing overhead control: Manufacturing overhead control, PP20,000 dr. Cost of goods sold, P384,000 dr. Finished goods, P96,000 dr. Work in process, P160,000 dr. Raw materials, P160,000 dr. Case 1: any under- or over- applied overhead is considered material. a. What is the adjusted balance of finished goods inventory after disposing the under-or over-applied overhead? b. What is the adjusted balance of work in process inventory after disposing the under-or over-applied overhead?
The following information was taken from A Company’s accounting records for the current year: Decrease in raw materials – P500,000; Increase in goods in process inventory – P800,000; Decrease in finished goods inventory – P1,000,000; Raw materials purchased – P20,000,000; Direct labor payroll – P5,000,000; Factory overhead – P4,000,000; Freight out – P1,500,000; Freight in – P2,300,000 What is the cost of goods sold? [A] 32,000,000 [B] 33,500,000 [C] 30,000,000 [D] 30,600,000
The following information are taken from Pineapple Co. accounting records for the current period: • Decrease in raw materials inventory- P500,000 • Direct labor payroll- P5,000,000 • Increase in goods in process inventory- P800,000 • Factory overhead- P4,000,000 • Decrease in finished goods inventory- P1,000,000 • Freight out- P1,500,000 • Raw materials purchased- P20,000,000 • Freight in- P2,300,000 What is the cost of goods sold for the current year? a. P32,000,000 b. P30,600,000 c. P33,500,000 d. P30,000,000