Year 1 Year 2 Item: Direct materials used in production Direct materials: Beginning inventory Direct materials purchases Direct materials: Ending inventory Direct labor used in production a $50,000 $ 10,000 45,000 d 15,000 17,000 b 53,000 76,000 Manufacturing overhead costs used in production Work in process: Beginning inventory Work in process: Ending inventory Finished goods: Beginning inventory Finished goods: Ending inventory Cost of goods sold 80,000 17,000 14,000 14,000 19,000 8,000 7,000 7,000 11,000 169,000

Year 1 Year 2 Item: Direct materials used in production Direct materials: Beginning inventory Direct materials purchases Direct materials: Ending inventory Direct labor used in production a $50,000 $ 10,000 45,000 d 15,000 17,000 b 53,000 76,000 Manufacturing overhead costs used in production Work in process: Beginning inventory Work in process: Ending inventory Finished goods: Beginning inventory Finished goods: Ending inventory Cost of goods sold 80,000 17,000 14,000 14,000 19,000 8,000 7,000 7,000 11,000 169,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...

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Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the rate of 100% of the direct labor cost. What is the value of the Inventory transferred to the next department if beginning inventory was 2,000 units; 9,000 units were started; and 1.000 units were in ending inventory? A. $1,000 B. $13,000 C. $130.000 D. $20.000
Selected information concerning the operations of a company for the year ended December 31 is as follows: Work in process inventories at the beginning and end of the year were zero. Beginning inventory of finished goods was 9,650 (for 1,000 units). Cost of goods sold was 174,600. What was the companys finished goods inventory cost at December 31? a. 98,050 b. 29,100 c. 29,050 d. 40,600
Cost of goods sold Pine Creek Company completed 200,000 units during the year at a cost of 3,000,000. The beginning finished goods inventory was 25,000 units at 310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow.
LIFO costing Using last-in, first-out perpetual inventory costing and the information presented in E2-7, compute the cost of materials used and the cost of the July 31 inventory.
There were 1,000 units in ending inventory after transferring 16,000 units to finished goods inventory. If the beginning inventory was 2,000 units, how many units were started in process? A. 1.000 B. 2,000 C. 15,000 D. 17,000
Account Dollar amount Beginning Materials Inventory $74,323 Purchases ? Materials available for use 151,644 Ending inventory ? Materials used in production 78,413 Work In Process Inventory Beginning inventory 253,210 Materials used in production ? Direct labor 125,900 Overhead applied 94,425 Manufacturing costs incurred ? Ending inventory 242,932 Cost of goods manufactured ? Finished Goods Inventory Beginning inventory 333,149 Cost of goods manufactured ? Goods available for sale ? Ending inventory 354,235 Cost of goods sold ? Prepare the journal entries to record the following events: The purchase of materials The completion of work in process The sale of finished goods (omit the revenue side of the sale)
Work in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by 60% during the year. Cost of goods manufactured amounts to $275,000. What are the total manufacturing costs incurred in the current year? a.$233,750 b.$291,500 c.$275,750 d.$302,000 Period costs include a.operating costs that are shown on the income statement when products are sold b.operating costs that are shown on the income statement in the period in which they are incurred c.current liabilities on the balance sheet d.current assets on the balance sheet On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include A.amortization of premium on bonds payable. B.receipts from the sale of investments. C.receipts from the issuance of common stock. D.payments for cash dividends.
Problem 1.a.: Computation of Direct Material Used.Akari Inc. provided the following information for its raw material inventory account at the end of the current month:Raw Materials (RM) InventoryAccounts $ Accounts $Beginning balance $22,600 Direct materials (DM) used ?Purchase $88,400 Indirect materials used $7,600Ending Balance $27,200Required: Compute the missing information for the direct materials used during the current month.Solution: Formula: Beginning RM+ RM Purchased= Total RM available for use- Ending RM= RM used- Indirect material used= DM used
Beginning inventory and direct material cost added during the month total 55000 what is the value of the ending work in progress inventory if the beginning inventory was 2000 unit 9000 unit we're started and 1000 unit we're in the ending of inventory
Objective 3 - Define tangible and intangible products, and explain why thereare different product cost definttions., 4 - Prepare income statements formanufacturing and service organizations.Ellerson Company provided the following information for the last calendaryear.Beginning inventory:Direct materials $68,000Work in process 29,400Finished goods 43,200Ending inventory:Direct materials $70,400Work in process 40,000Finished goods 42,100During the year, direct materials purchases amounted to $278,000, directlabor cost was S189,000, and overhead cost was $523,000. During the year,100,000 units were completed.Required:1, Calculate the total cost of direct materials used in production.2. Calculate the cost of goods manufactured. Calculate the unit manufacturingcost.3. Of the unit manufacturing cost calculated in Requirement 2, $2. 70 is directmaterials and S5.30 is overhead. What is the prime cost per unit? Conversioncost per unit?
Additional information: 1. Inventory on 31 March 2021: Raw materials RM 19,400 Work in progress RM 16,400 Finished goods RM 31,400 2. Utilities and insurance expense are to be apportioned between factory and office in the ratio 2:1. 3. Only 40% of the rent expense and 50% of the general expense apply to factory operations, the remaining amounts should be charged to administrative activities. 4. Accrued payments: Factory direct wages RM 2,500 Utilities RM 1,800 5. Depreciation for the year is to be charged as follows:. Plant and machinery 10% on cost Office equipment 5% on reducing balance method Required : a) Prepare statement of cost of goods manufactured for the year ended 31 March 2021. b) Prepare statement of profit or loss for the year ended 31 March 2021. c) Prepare statement of financial position as at 31 March 2021.
Work in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by 60% during the year. Cost of goods manufactured amounts to $275,000. The total manufacturing costs incurred in the current year are a.$302,000 b.$291,500 c.$275,750 d.$233,750