1.Based on the data above. What is the cost of goods sold on January 1,2020?2.Based on the data above. What is work in process on January 1, 2020? Kainkamuna Co. is engaged inthe business of manufacturingbasket balls. The companyemploys actual costing system.The company uses a singleaccount for direct and indirectmaterials. The companyprovided the following data forthe year ended December31,2020. *Gross salesSales returnsGross purchasesPurchase returns, allowance and discountFreight inTotal costs of factory laborDepreciation of factory assetsExpired insurance on factory assetsUtilities expense on factoryTotal administrative expensesTotal marketing expenses9,500,000500,0001,000,000200,000400,0001,000,000300,000100,000500,0002,000,0003,000,000Inventories are as follows:December 31300,000200,000600,000January 1100,000Raw materialsWork in processFinished goods500,000The following additional data are provided:1. The net profit ratio of the company beforeincome tac for the year ended December31,2020 was 10% of net sales.2. The direct labor cost for the year was fourtimes the cost of indirect labor.3. The cost of indirect materials used was Php100,000.00

Cost accounting means where every cost of doing business is recorded in necessary account and cost…

Answered: .Based on the data above. What is the…

.Based on the data above. What is the cost of goods sold on January 1,2020? 2.Based on the data above. What is work in process on January 1, 2020?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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When does the cost of purchasing raw materials become an expense? When the goods being produced with that inventory are finished. When the company pays for the raw materials purchased. When the goods are moved into the inventory production process. When the finished good produced with those materials is sold.
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