A manufacturer runs costing on a job costing basis (i.e. only ONE Work in Process - WIP Account and all costs are traceable) The company has recorded the following for a single month of production: Raw Materials - Opening Balance: $14072 , Purchases $76037 and has a Closing Balance of $17977 WIP Information: Conversion costs incurred this period include: Opening balance of WIP was $54540, DL $39742 and OHDs $40023 and the closing balance of WIP was $26620 Finished Goods information: Opening Balance of FG was $55460 and the closing balance was $60914 Required: Trace all costs through the three inventory accounts (RM > WIP > FG > COGS) to calculate the Cost of Goods Sold this month
A manufacturer runs costing on a job costing basis (i.e. only ONE Work in Process - WIP Account and all costs are traceable) The company has recorded the following for a single month of production: Raw Materials - Opening Balance: $14072 , Purchases $76037 and has a Closing Balance of $17977 WIP Information: Conversion costs incurred this period include: Opening balance of WIP was $54540, DL $39742 and OHDs $40023 and the closing balance of WIP was $26620 Finished Goods information: Opening Balance of FG was $55460 and the closing balance was $60914 Required: Trace all costs through the three inventory accounts (RM > WIP > FG > COGS) to calculate the Cost of Goods Sold this month
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A
The company has recorded the following for a single month of production:
Raw Materials - Opening Balance: $14072 , Purchases $76037 and has a Closing Balance of $17977
WIP Information: Conversion costs incurred this period include: Opening balance of WIP was $54540, DL $39742 and OHDs $40023 and the closing balance of WIP was $26620
Finished Goods information: Opening Balance of FG was $55460 and the closing balance was $60914
Required: Trace all costs through the three inventory accounts (RM > WIP > FG > COGS) to calculate the Cost of Goods Sold this month
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education