The following information was taken from the record of Jenny Manufacturing Inc.: Increase in finished goods, P100,000; Increase in work in process, P110,000; Decrease in raw materials P96,000; Total cost placed in process, P5,000,000; Materials purchases, P960,000; Direct labor, P880,000; Work in process, beg. P1,600,000. Question: Is the direct materials used here the 96,000 decrease? If yes/not, why? Please provide an explanation so I can understand. Thank you so much!
The following information was taken from the record of Jenny Manufacturing Inc.: Increase in finished goods, P100,000; Increase in work in process, P110,000; Decrease in raw materials P96,000; Total cost placed in process, P5,000,000; Materials purchases, P960,000; Direct labor, P880,000; Work in process, beg. P1,600,000. Question: Is the direct materials used here the 96,000 decrease? If yes/not, why? Please provide an explanation so I can understand. Thank you so much!
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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Question
The following information was taken from the record of Jenny Manufacturing Inc.:
Increase in finished goods, P100,000;
Increase in work in process, P110,000;
Decrease in raw materials P96,000;
Total cost placed in process, P5,000,000;
Materials purchases, P960,000;
Direct labor, P880,000;
Work in process, beg. P1,600,000.
Question:
Is the direct materials used here the 96,000 decrease? If yes/not, why?
Please provide an explanation so I can understand. Thank you so much!
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