Concept introduction:
Days’ sales in work in process inventory:
Days sales in work in process inventory is a measurement of efficiency. This shows the number of days for which inventory is hold by the company. In other words, we can say that it shows relationship between work in process inventory and cost of goods sold.
Requirement 1:
Days sales in work in process inventory for the current year.
Concept introduction:
Days’ sales in work in process inventory:
Days’ sales in work in process inventory is a measurement of efficiency. This shows the number of days for which inventory is hold by the company. In other words we can say that it shows relationship between work in process inventory and cost of goods sold.
Requirement 2:
Days’ sales in work in process inventory for the prior year.
Concept introduction:
Days’ sales in work in process inventory:
Days’ sales in work in process inventory is a measurement of efficiency. This shows the number of days for which inventory is hold by the company. In other words we can say that it shows relationship between work in process inventory and cost of goods sold.
Requirement 3:
Did days’ sales in work in process inventory increase or decrease from the prior year?
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Managerial Accounting
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- Statement of cost of goods manufactured; income statement; balance sheet The adjusted trial balance for Rochester Electronics, Inc. on November 30, the end of its first month of operation, is as follows: The general ledger reveals the following additional data: a. There were no beginning inventories. b. Materials purchases during the period were 33,000. c. Direct labor cost was 18,500. d. Factory overhead costs were as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of November. 2. Prepare an income statement for the month of November. (Hint: Check to be sure that your figure for Cost of Goods Sold equals the amount given in the trial balance.) 3. Prepare a balance sheet as of November 30. (Hint: Do not forget Retained Earnings.)arrow_forwardSeveral items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December: Instructions 1. For both companies, determine the amounts of the missing items (a) through (f), identifying them by letter. 2. Prepare Yakima Companys statement of cost of goods manufactured for December. 3. Prepare Yakima Companys income statement for December.arrow_forwardWebster Company uses backflush costing to account for its manufacturing costs. The trigger points for recording inventory transactions are the purchase of materials, the completion of products, and the sale of completed products. Required: 1. Prepare journal entries, if needed, to account for the followingtransactions. a. Purchased raw materials on account, 135,000. b. Requisitioned raw materials to production, 135,000. c. Distributed direct labor costs, 20,000. d. Incurred manufacturing overhead costs, 80,000. (Use Various Credits for the credit part of the entry.) e. Cost of products completed, 235,000. f. Completed products sold for 355,000, on account. 2. Prepare any journal entries that would be different from theabove, if the only trigger points were the purchase of materialsand the sale of finished goods.arrow_forward
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