Understanding the Relationship between Cost Flows, Inventories, and Cost of Goods Sold Ivano Company has collected cost accounting information for the following subset of items for Years 1 and 2. Required :Calculate the values of the missing Items a through e. Year 1Year 2Item:Direct materials used in productionDirect materials: Beginning inventoryDircct materials purchasesDircct materials: Ending inventoryDircct labor uscd in productionManufacturing overhcad costs used in productionWork in proccss: Beginning inventoryWork in process: Ending inventoryFinished goods: Beginning inventoryFinished goods: Ending inventoryCost of goods sold$50,000$ 10,000P17,00045,00015,000b53,00080,00076,00017,00014,00014,00019,0008,0007,0007,00011,000169,000

The cost of goods sold includes the cost of goods that are sold during the period.

Answered: Year 1 Year 2 Item: Direct materials…

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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Understanding the Relationship between Cost Flows, Inventories, and Cost of Goods Sold Ivano Company has collected cost accounting information for the following subset of items for Years 1 and 2.

Required :

Calculate the values of the missing Items a through e.

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

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