10. A review of a company's Work-in-Process Inventory account found a debitfor materials of P67,000. If all procedures were performed in the correctmanner, this means that the firm:also recorded a credít to Manufacturing Supplies Inventory.a.b. was accounting for the usage of direct materials.was accounting for the usage of indirect materials.d. was accounting for the' usage of direct materials by also crediting theRaw-Material Inventory account.с.

Solution: Production costs incurred are debited to work in process in terms of direct materials…

10. A review of a company's Work-in-Process Inventory account found a debit for materials of P67,000. If all procedures were performed in the correct manner, this means that the firm: a. also recorded a credit to Manufacturing Supplies Inventory. b. was accounting for the usage of direct materials. was accounting for the usage of indirect materials. C. CCounting for the usage of direct materials by also crediting the

10. A review of a company's Work-in-Process Inventory account found a debit for materials of P67,000. If all procedures were performed in the correct manner, this means that the firm: a. also recorded a credit to Manufacturing Supplies Inventory. b. was accounting for the usage of direct materials. was accounting for the usage of indirect materials. C. CCounting for the usage of direct materials by also crediting the

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter1: Introduction To Cost Accounting

Section: Chapter Questions

Problem 9E: The following inventory data relate to Edwards, Inc.: Calculate the following for the year: a....

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What are the total costs to account for if a companys beginning inventory had $231,432 in materials, $186,450 in conversion costs, and added direct material costs ($4,231,392), direct labor ($2,313,392), and manufacturing overhead ($1,156,696)?
Problem 7: Cost of Production Report Helen Company uses FIFO process costing. Data are as follows: Beginning inventory 40% complete Units completed during period Ending inventory 70% complete 25,000 units 500,000 units 45,000 units
Answer the following questions by analysing the T-accounts given below. a) Purchases of direct material b) The cost of direct material used c) Why does direct labor account has a credit balance of $5000? Explain d) Direct labor costs assigned to production e) The overhead as a percentage of direct labor costs f) Total manufacturing costs charged to the Work in Process Inventory account during the current year g) The cost of finished goods manufactured h) The year-end balance in the Work in Process Inventory account i) The cost of goods sold j) The total amount of inventory listed in the hear-end balance sheet k) Manufacturing overhead assigned to production
Problem 7: Cost of Production Report Helen Company uses FIFO process costing. Data are as follows: Beginning inventory 40% complete Units completed during period Ending inventory 70% complete 25,000 units 500,000 units 45,000 units
Adelphia Manufacturing issued $70,000 of direct materials and $9,000 of indirect materials for production. Which of the following journal entries would correctly record the transaction? O A. Work-in- Process Inventory Raw Materials Inventory B. Manufacturing Overhead Raw Materials Inventory OC. Work-in - Process Inventory Manufacturing Overhead Raw Materials Inventory D. Raw Materials Inventory Finished Goods Inventory Work-in - Process Inventory 79,000 79,000 70,000 9,000 79,000 79,000 79,000 79,000 70,000 9,000
Boriales Company provided the following transactions relating to its raw materials inventory during the month of September Sept Particulars Quantity Unit Cost (P) Total (P) Beginning Balance Received from Supplier Issued for production Received from supplier Issued for production Received from production Returned.to supplier (from those received on Sept 21") Issued for production Returned to storeroom (from those issued on Sept 18) Issued to production Received from supplier 300 12 3. 200 13 9. 150 16 300 14 18 350 21 300 15 22 30 23 400 24 20 26 50 28 200 16 Requirement 1. Determine the value of ending inventory and materials used under First In First Out (FIFO Method) 2. Determine the value of ending inventory and materials used under Moving Average Method *use the following heading in an Stock Ledger Card for FIFO Method and Moving Average Method Received Issued Balance Date PR Qty Unit Amount MR Qty Unit Amount Qty Unit Amount No. Cost No Cost cost
Boriales Company provided the following transactions relating to its raw materials inventory during the month of September Sept Particulars Quantity Unit Cost (P) Total (P) 1. Beginning Balance Received from Supplier Issued for production Received from supplier Issued for production Received from production Returned.to supplier (from those received on Sept 21") Issued for production 300 12 3. 200 13 9. 150 16 300 14 18 350 21 300 15 22 30 23 400 Returned to storeroom (from those issued on Sept 18") Issued to production Received from supplier 24 20 26 50 28 200 16 2. Determine the value of ending inventory and materials used under Moving Average Method *use the following heading in an Stock Ledger Card for FIFO Method and Moving Average Method Received Issued Balance Date PR Qty Unit Amount MR Qty Unit Amount Qty Unit Amount No. Cost No Cost cost
The list of items that may or may not be reported as inventory in a company's December 31 financial position is presented below. Indicate which of these items would typically be reported as inventory in the financial statements. If an item is not reported as inventory, indicate how it should be reported in the financial statements. 1.Costs identified with units completed by a manufacturing firm but not yet sold. 2.Goods sold f.o.b. destination that is in transit at December 31.3.Short-term investment is stocks and bonds that will. Be resold in the near future.
Cost accounting systems used by manufacturing companies are based on the: A. LIFO inventory system. B. Perpetual inventory system. C. Finished goods inventories. D. Weighted average inventories. E. Periodic inventory system. Reset Selection
Cost of materials issuances under the FIFO methodAn incomplete subsidiary ledger of materials inventory for May is as follows: A. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO.B. Determine the materials inventory balance at the end of May.C. Journalize the summary entry to transfer materials to work in process.D. Explain how the materials ledger might be- used as an aid in maintaining inventory quantities on hand.
The following cost and inventory data for the just completed year are taken from the accounting records of Eccles Company: Costs incurred: Advertising expense. Direct labor cost.... Purchases of raw materials. Rent, factory building. Indirect labor... Sales commissions. Utilities, factory.... Maintenance, factory equipment... Supplies, factory..... Depreciation, office equipment.. Depreciation, factory equipment. Beginning of Year End of Year Inventories: Raw Materials $8,000 $10,000 Work in Process $5,000 $20,000 Finished Goods $70,000 $25,000 .$100,000 $90,000 $132,000 . $80,000 $56,300 . $35,000 .$9,000 ... $24,000 $700 $8,000 .. $40,000 Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare the cost of goods sold section of Eccles Company.
Burgundy Manufacturing uses a process cost system and computes cost using the weighted average method. The beginning work-in-process inventory cost was $13,525. Manufacturing cost added during the period was $57,000. If Burgundy's ending work-in-process inventory was valued at $15,100, then cost of goods transferred must have been: a. $70,525. b. $55,425. c. $84,625. d. $58,575.