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6. MERALCO manufactures electrical meters. For May, there were no beginning inventories of raw materials and no beginning and ending work in process. MERALCO uses a JIT manufacturing system and backflush costing with three trigger points for making entries in the accounting system. • Purchase of raw materials – debited to Raw (materials)and In Process account • Completion of finished goods – debited to Finished Goods account Sale of finished goods Meralco's May standard cost per meter are direct materials, P25, and conversion costs, P20. The following data apply to May manufacturing: Raw materials are components purchased Conversion costs incurred P 550,000 440,000 21,000 20,000 Number of finished units manufactured Number of finished units sold REQUIRED: Compute the balances of Materials and In Process and Finished Goods inventory accounts At the end of May a. P25,000 and P945,000 respectively b. P550,000 and P45,000 respectively c. P25,000 and P45,000 respectively d. P550,000 and P945,000 respectively

6. MERALCO manufactures electrical meters. For May, there were no beginning inventories of raw materials and no beginning and ending work in process. MERALCO uses a JIT manufacturing system and backflush costing with three trigger points for making entries in the accounting system. • Purchase of raw materials – debited to Raw (materials)and In Process account • Completion of finished goods – debited to Finished Goods account Sale of finished goods Meralco's May standard cost per meter are direct materials, P25, and conversion costs, P20. The following data apply to May manufacturing: Raw materials are components purchased Conversion costs incurred P 550,000 440,000 21,000 20,000 Number of finished units manufactured Number of finished units sold REQUIRED: Compute the balances of Materials and In Process and Finished Goods inventory accounts At the end of May a. P25,000 and P945,000 respectively b. P550,000 and P45,000 respectively c. P25,000 and P45,000 respectively d. P550,000 and P945,000 respectively

FINANCIAL ACCOUNTING
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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6. MERALCO manufactures electrical meters. For May, there were no beginning inventories of raw materials and no beginning and ending work in process. MERALCO uses a JIT manufacturing system and backflush costing with three trigger points for making entries in the accounting system. • Purchase of raw materials – debited to Raw (materials)and In Process account Completion of finished goods – debited to Finished Goods account Sale of finished goods Meralco's May standard cost per meter are direct materials, P25, and conversion costs, P20. The following data apply to May manufacturing: Raw materials are components purchased P 550,000 Conversion costs incurred 440,000 Number of finished units manufactured 21,000 Number of finished units sold 20,000 REQUIRED: Compute the balances of Materials and In Process and Finished Goods inventory accounts At the end of May a. P25,000 and P945,000 respectively b. P550,000 and P45,000 respectively c. P25,000 and P45,000 respectively d. P550,000 and P945,000 respectively
Transcribed Image Text:6. MERALCO manufactures electrical meters. For May, there were no beginning inventories of raw materials and no beginning and ending work in process. MERALCO uses a JIT manufacturing system and backflush costing with three trigger points for making entries in the accounting system. • Purchase of raw materials – debited to Raw (materials)and In Process account Completion of finished goods – debited to Finished Goods account Sale of finished goods Meralco's May standard cost per meter are direct materials, P25, and conversion costs, P20. The following data apply to May manufacturing: Raw materials are components purchased P 550,000 Conversion costs incurred 440,000 Number of finished units manufactured 21,000 Number of finished units sold 20,000 REQUIRED: Compute the balances of Materials and In Process and Finished Goods inventory accounts At the end of May a. P25,000 and P945,000 respectively b. P550,000 and P45,000 respectively c. P25,000 and P45,000 respectively d. P550,000 and P945,000 respectively
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