In using FIFO method, Richer Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers. For December 2021, Richer Company presented the following costs on three processes:*see image attached* 1. What is the amount of cost of goods manufactured?a. P226,926.61b. P234,541.61c. P240,072.00d. None of the above 2. What is the total units to account for (TUTAF) in Department 1?a. 16,000b. 15,100c. 15,000d. 15,700 Required:Costs incurred:Process 1Process 2Process 333,75030,00022,725Materials27,72991,479Direct Labor30,20024,64877,573Overhead24,16018,18019,71862,058Total88,11070,90572,095231,11050% at beginning,50% at 60% complete 50% complete, andMaterials are added at:100% at the beginning40% at beginning, 30% atremaining 30% at 80%complete.Started/Transferred In15,000 units15,200 units5,700 units1.000 units 50% complete.Cost: Materials P2,250;Labor P1,000; OH P800.500 units 70% complete. 250 units 40% complete, 250Cost from precedingdepartment P2,925;Materials P1,000; LaborP525; OH P420.units 70% complete. Costfrom preceding pepartmentP5,275; Materials P495:Labor P440; OH P352.In process, beginningCompleted15,200 units15,300 Units15,400 UnitsIn Process, end800 units 50% complete400 units 50% complete400 units at 70% complete

Cost of goods manufactured: Cost of goods manufactured refers to the expenses incurred by the…

Answered: 1. What is the amount of cost of goods…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

In using FIFO method, Richer Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers. For December 2021, Richer Company presented the following costs on three processes:

*see image attached*

1. What is the amount of cost of goods manufactured?

a. P226,926.61

b. P234,541.61

c. P240,072.00

d. None of the above

2. What is the total units to account for (TUTAF) in Department 1?

a. 16,000

b. 15,100

c. 15,000

d. 15,700

Required:
Costs incurred:
Process 1
Process 2
Process 3
33,750
30,000
22,725
Materials
27,729
91,479
Direct Labor
30,200
24,648
77,573
Overhead
24,160
18,180
19,718
62,058
Total
88,110
70,905
72,095
231,110
50% at beginning,
50% at 60% complete 50% complete, and
Materials are added at:
100% at the beginning
40% at beginning, 30% at
remaining 30% at 80%
complete.
Started/Transferred In
15,000 units
15,200 units
5,700 units
1.000 units 50% complete.
Cost: Materials P2,250;
Labor P1,000; OH P800.
500 units 70% complete. 250 units 40% complete, 250
Cost from preceding
department P2,925;
Materials P1,000; Labor
P525; OH P420.
units 70% complete. Cost
from preceding pepartment
P5,275; Materials P495:
Labor P440; OH P352.
In process, beginning
Completed
15,200 units
15,300 Units
15,400 Units
In Process, end
800 units 50% complete
400 units 50% complete
400 units at 70% complete

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions