Financial and Managerial Accounting
9th Edition
ISBN: 9781264098583
Author: Wild, John J.
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Cost flow methods
The following three identical units of Item P401C are purchased during April:
Apr. 2
Apr. 15
Apr. 20
Total
Average cost per unit ($348 ÷ 3 units)
Item Beta Units
Cost
Purchase
1
$114
Purchase
1
116
Purchase
1
118
3
$348
$116
Assume that one unit is sold on April 27 for $159.
Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-ou
and (c) weighted average cost method.
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Gross Profit
Ending Inventory
$
$
$
PROBLEM 14: MMM Company started operations in 2019. The following data are abstracted
from the company's production and sales records:
2019
2020
2021
of units
Number
produced
Number of units sold
Unit production cost
116,250
108,750
P 4.50 P 5.20 P 5.80
900,000
120,000
75,000
101,250
97,500
Sales revenue
600,000
975,000
19. Using the FIFO cost flow assumption, the gross profit for the year ended December 31,
2021 is:
PROBLEM 15: The following quarterly cost data have been accumulated for New DDD
Manufacturing, Inc.:
Raw materials, 1/1/2022
Purchases of raw materials
10,000 units at P6.00
8,500 units at P7.00
11,000 units at P7.50
Raw materials transferred to
work in process
Work in process, 1/1/2022
Direct labor
Manufacturing overhead
Work in process, 3/31/2022
21,500 units
5,600 units at P13.50
P 250,000
325,000
4,200 units at P13.75
20. If New Dehi uses the FIFO method for valuing raw materials inventories, compute for the
cost of goods manufactured for the quarter ended March 31,…
Direct materials:
Beginning inventory
Purchases
Ending inventory
Direct manufacturing labor
Manufacturing overhead
Beginning work-in-process inventory
Ending work-in-process inventory
Beginning finished goods inventory
Ending finished goods inventory
P 40,000
123,200
20,800
32,000
24,000
8,000
1,600
48,000
32,000
Required:
A. What is the cost of direct materials used during 2022?
B. What is cost of goods manufactured for 2022?
C. What is cost of goods sold for 2022?
D. What amount of prime costs was added to production during 2022?
E. What amount of conversion costs was added to production during 2022?
Chapter 14 Solutions
Financial and Managerial Accounting
Ch. 14 - Prob. 1QSCh. 14 - QS 14-4 Direct and indirect costs C2
Diez Company...Ch. 14 - Classifying product costs C2 Identify each of the...Ch. 14 - QS 14-6 Product and period costs C3
Identify each...Ch. 14 - Prob. 6QSCh. 14 - Exercise 14-1 Sources of accounting information C1...Ch. 14 - Prob. 5ECh. 14 - Prob. 10ECh. 14 - Prob. 13ECh. 14 - Prob. 14E
Ch. 14 - Prob. 15ECh. 14 - Prob. 16ECh. 14 - Exercise 14-17 Lean business practice C6 Many...Ch. 14 - Prob. 3PSACh. 14 - Problem 14-3B Schedule of cost of goods...Ch. 14 - Describe the managerial accountant’s role in...Ch. 14 - Distinguish between managerial and financial...Ch. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Distinguish between (a) factory overhead and (b)...Ch. 14 - Prob. 6DQCh. 14 - What product cost is both a prime cost and a...Ch. 14 - APPLE Assume that we tour Apple’s factory where it...Ch. 14 - Prob. 9DQCh. 14 - Prob. 10DQCh. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - Prob. 14DQCh. 14 - Prob. 15DQCh. 14 - Prob. 16DQCh. 14 - What are the three categories of manufacturing...Ch. 14 - List several examples of factory overhead.Ch. 14 - Prob. 20DQCh. 14 - GOOGLE Prepare a proper title for the annual...Ch. 14 - Prob. 22DQCh. 14 - Prob. 23DQCh. 14 - Prob. 24DQCh. 14 - Prob. 2BTN
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