The following data are obtained from Gianne Manufacturing Company: Cost of goods manufactured is P187,500 Inventory variations are as follows: raw materials ending inventory is one-third based on raw materials beginning; no initial inventory of work-in-process, but at end of period P12.500 was on hand; finished goods inventory was four times as large at end of period as at the start. Net income after taxes amounted to P26.000, income tax rate is 35%. Purchase of raw materials amounted to net income before taxes. Breakdown of costs incurred in manufacturing cost was as follows: Raw materials consumed Direct labor Overhead 50% 30% 20% Compute the amount raw materials beginning inventory: P38,571 P60,000 P90,000 P40,000

The following data are obtained from Gianne Manufacturing Company: Cost of goods manufactured is P187,500 Inventory variations are as follows: raw materials ending inventory is one-third based on raw materials beginning; no initial inventory of work-in-process, but at end of period P12.500 was on hand; finished goods inventory was four times as large at end of period as at the start. Net income after taxes amounted to P26.000, income tax rate is 35%. Purchase of raw materials amounted to net income before taxes. Breakdown of costs incurred in manufacturing cost was as follows: Raw materials consumed Direct labor Overhead 50% 30% 20% Compute the amount raw materials beginning inventory: P38,571 P60,000 P90,000 P40,000

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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Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for 400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips accounting records provide the following information: Required: 1. Prepare a statement of cost of goods manufactured. 2. Compute the average cost of producing one unit of product in the year. 3. Prepare an income statement for external users.
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
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.
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)?
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