The following are information related to April 2020 transaction of Magnolia company, manufacturer of ready-to-drink juice. The balances available on April 1, 2020 are the following: Raw Material Inventory: 1,000,000 and Work-in-process inventory: 2,000,000. Magnolia company uses calendar year as its accounting period. The following are data collected by the accountant for the quarter ended June 2020: a. It is magnolia’s policy to purchase raw materials amounting to half of the beginning raw materials inventory. b. The cost of goods manufacture based on the Magnolia’s cost sheets amounts to 1,125,000 c. Magnolia sold 20,000 bottles of ready-to-drink juice at a price of 150 each. d. The gross profit earned by the company from the second quarter sales is 575,000. e. The total conversion cost is 425,000. f. Upon physical count of the warehouse staffs with the supervision of the accountant, the following were obtained: Work-in-process inventory: 1,500,000 and Finished Goods inventory: 1,200,000. The much is the balance of Raw Material Inventory account as of June 30, 2020 1,400,000 1,200,000 1,300,000 1,250,000
The following are information related to April 2020 transaction of Magnolia company, manufacturer of ready-to-drink juice. The balances available on April 1, 2020 are the following: Raw Material Inventory: 1,000,000 and Work-in-process inventory: 2,000,000. Magnolia company uses calendar year as its accounting period. The following are data collected by the accountant for the quarter ended June 2020: a. It is magnolia’s policy to purchase raw materials amounting to half of the beginning raw materials inventory. b. The cost of goods manufacture based on the Magnolia’s cost sheets amounts to 1,125,000 c. Magnolia sold 20,000 bottles of ready-to-drink juice at a price of 150 each. d. The gross profit earned by the company from the second quarter sales is 575,000. e. The total conversion cost is 425,000. f. Upon physical count of the warehouse staffs with the supervision of the accountant, the following were obtained: Work-in-process inventory: 1,500,000 and Finished Goods inventory: 1,200,000. The much is the balance of Raw Material Inventory account as of June 30, 2020 1,400,000 1,200,000 1,300,000 1,250,000
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter27: Adjustments, Financial Statements, And Year-end Accounting For A Manufacturing
business
Section: Chapter Questions
Problem 1MP: Reese Manufacturing Company manufactures and sells a limited line of products made to customer...
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The following are information related to April 2020 transaction of Magnolia company, manufacturer of ready-to-drink juice. The balances available on April 1, 2020 are the following: Raw Material Inventory: 1,000,000 and Work-in-process inventory: 2,000,000. Magnolia company uses calendar year as its accounting period. The following are data collected by the accountant for the quarter ended June 2020: a. It is magnolia’s policy to purchase raw materials amounting to half of the beginning raw materials inventory. b. The cost of goods manufacture based on the Magnolia’s cost sheets amounts to 1,125,000 c. Magnolia sold 20,000 bottles of ready-to-drink juice at a price of 150 each. d. The gross profit earned by the company from the second quarter sales is 575,000. e. The total conversion cost is 425,000. f. Upon physical count of the warehouse staffs with the supervision of the accountant, the following were obtained: Work-in-process inventory: 1,500,000 and Finished Goods inventory: 1,200,000. The much is the balance of Raw Material Inventory account as of June 30, 2020
1,400,000
1,200,000
1,300,000
1,250,000
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