ABC Company has the following records for the period ended 31 December 2020. Material purchased OMR 140000 Purchase returns of raw materials OMR5000 Factory maintenance OMR 8500 Salary of office staff OMR 22400 Power and heat-factory OMR 4400 Insurance expense-factory OMR 3000 Depreciation-factory building and equipment OMR 6500 Purchase Expenses on raw material OMR 1000 Insurance expense-Office OMR 8000 Depreciation-Office building OMR 18000 Advertisement expenses OMR 8500 Inventories, 1 January 2020: Raw Materials OMR 6000 Direct labor OMR 75000 Direct Expenses OMR 8000 Inventories, 31 December 2020: Raw Material OMR 9000 What is the Production Cost (Cost of production) for ABC Company?

ABC Company has the following records for the period ended 31 December 2020. Material purchased OMR 140000 Purchase returns of raw materials OMR5000 Factory maintenance OMR 8500 Salary of office staff OMR 22400 Power and heat-factory OMR 4400 Insurance expense-factory OMR 3000 Depreciation-factory building and equipment OMR 6500 Purchase Expenses on raw material OMR 1000 Insurance expense-Office OMR 8000 Depreciation-Office building OMR 18000 Advertisement expenses OMR 8500 Inventories, 1 January 2020: Raw Materials OMR 6000 Direct labor OMR 75000 Direct Expenses OMR 8000 Inventories, 31 December 2020: Raw Material OMR 9000 What is the Production Cost (Cost of production) for ABC Company?

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

Q: Information for 2020 Beginning inventory of direct materials, 1/1/2020 Purchases of direct materials…

A: Manufacturing costs are those which are incurred by an entity on the production of the goods. It…

Q: Santiago Company has provided data for the year-end adjustments as follows: Factory overhead to be…

A: Adjusting entries are journal entries usually made at the end of an accounting period to allocate…

Q: Marigold Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31,…

A: The cost of goods sold included the total manufacturing cost of goods sold during the period.

Q: Need Help with this Question

A: Data Provided:Overhead Rate: $15 per direct labor hourDirect Labor Rate: $20 per hourJobs: A, B, and…

Q: Raw materials inventory Work in process inventory Finished goods inventory Dec. 31, 2021 O $1625900…

A: The cost of goods sold includes the cost of goods that are sold during the period. The ending…

Q: Survivor Company incurred the following cost for the year-ended December 31, 2021: Depreciation of…

A: Period costs are costs that are not directly related to production process . Costs such as sales,…

Q: C. f. Purchased direct raw materials worth IDR 25,000,000 and indirect raw materials worth IDR…

A: Journal Entry: The process of entering an accounting transaction into the financial records of a…

Q: ABC Electrical Company has the following records for the period ended 31 December 2019. Total…

A: ABC Electrical Company…

Q: Following details have been extracted for the year ended 31st March, 2021 Particulars Rs.…

A: Answer to Question: Cost Sheet as on March 31,2021…

Q: a. Materials purchased on account, $412,000. Description c. Factory labor during the period was…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: when the company purchases raw materials for $60,000 on account, the entry should include: * A debit…

A: Journal is the recording of financial transaction according to dual entity concept.

Q: prepare detailed Cost Statement for the year ended 31-3-2021. Particulars Amt. Opening Stock…

A: Cost Sheet Description Amount Opening Stock - Raw Material 20,000.00 Add: Purchase -…

Q: need help with this question please provide it with correct option

A: Step 1: Introduction to the Cost of Goods Manufactured:The cost of goods manufactured is calculated…

Q: Bubba Manufacturing Company provided the following information for the fiscal year to June 30, 2020:…

A: Cost of goods manufactured schedule: The cost of goods manufactured schedule is used to calculate…

Q: Cost Items Cost Raw materials, 1/1/2019 OMR 30,000 Insurance, factory OMR 14,000 Raw materials,…

A: Direct material used means the raw material used in producing the finished goods directly. Indirect…

Q: The following calendar-year information is taken from the adjusted trial balance and other records…

A: Compute the following as explained below: 1. The amount of materials used: 2. Factory overheads: 3.…

Q: Show the presentation of the ending inventories on September 30, 2020, balance sheet. SUNLANDCO.…

A: Please find the partial balance sheet of Sunland Company in step 2 below.

Question

ABC Company has the following records for
the period ended 31 December 2020.
Material purchased
OMR 140000
Purchase returns of raw materials
OMR5000
Factory maintenance
OMR 8500
Salary of office staff
OMR 22400
Power and heat-factory
OMR 4400
Insurance expense-factory
OMR 3000
Depreciation-factory building and
equipment
OMR 6500
Purchase Expenses on raw material
OMR 1000
Insurance expense-Office
OMR 8000
Depreciation-Office building
OMR 18000
Advertisement expenses
OMR 8500
Inventories, 1 January 2020: Raw Materials
OMR 6000
Direct labor
OMR 75000
Direct Expenses
OMR 8000
Inventories, 31 December 2020: Raw
Material OMR 9000
What is the Production Cost (Cost of
production) for ABC Company?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

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

Please do not give solution in image format thanku
XYZ Company recorded the following information, related to their inventory accounts for 2024: Direct materials inventory Work in process inventory Finished goods inventory Indirect materials Prime costs .... XYZ Company's accounting records for 2024 provided the following information: Direct materials purchased Depreciation, factory equipment. Utilities (see note below) Sales commissions TI HE Depreciation, office equipment Rent, factory building . January 1 $74,000 $48,000 $51,000 Advertising .... Production supervisor's salary I $ 56,000 $ 63,000 $ 40,000 $ 81,000 $ 33,000 $202,000 December 31 $37,000 $83,000 $26,000 $ 37,000 $ 70,000 $ 89,000 $ 57,000 Note: 75% of the utilities relate to the general office building while 25% of the utilities relate to the factory. Calculate XYZ Company's direct labor cost for 2024.
The Genesis Corporation has the following account balances (in millions): For Specific Date Direct materials, January 1, 20X1 Work in process, January 1, 20XI Finished goods, January 1, 20X1 Direct materials, December 31, 20X1 Work in process, December 31, 20X1 Finished goods, December 31, 20X1 For Year 20X1 P15 Purchases of direct materials P325 10 Direct manufacturing labor 70 Depreciation - plant building and equipment 5 Plant supervisory salaries 55 Miscellaneous plant overhead 100 20 80 5 35 Revenues 950 Marketing, distribution and customer-service costs 240 Plant supplies used Plant utilities 10 30 Indirect manufacturing labor 60 Required: 1. Prepare an income statement and a supporting schedule of costs of goods manufactured for the year ended December 31, 20X1.
A
On November 30, 2022, there was a fire in the factory of Oriole Manufacturing Limited, where you work as the controller. The work in process inventory was completely destroyed, but both the materials and finished goods inventories were undamaged. Oriole uses normal job-order costing and its fiscal year end is December 31. Selected information for the periods ended October 31, 2022, and November 30, 2022, follows: Supplies (including both direct and indirect materials) Work in process inventory Finished goods inventory Cost of goods sold (year to date) Accounts payable (relates to materials purchased only) Manufacturing overhead incurred (year to date) Manufacturing overhead applied Other information for November 2022: Cash payments to suppliers Payroll (including $15.570 indirect) Indirect materials used Over-applied overhead (during November only) October 31, 2022 $80,250 59,575 60,000 574,000 18,460 130,300 128,700 $60,000 83,500 5,870 2.830 November 30, 2022 $73,700 ? 63,200 662,700…
Current Attempt in Progress Vaughn Inc's accounting records reflect the following inventories: Raw materials inventory Work in process Inventory Finished goods inventory Dec. 31, 2021 Dec. 31, 2022 $79000 $63000 O $1466000 O $1450000 $1387000 O $1434000 103000 100000 115000 92000 During 2022, Vaughn purchased $1450000 of raw materials, incurred direct labor costs of $250000, and incurred manufacturing overhead totaling $160000. (Assume that all raw materials used were direct materials.) What was the cost of raw materials transferred to production during 2022 for Vaughn?
Concord Corporation's accounting records reflect the following inventories: Raw materials inventory Work in process inventory Finished goods inventory. Dec. 31, 2020 O $2190700 O $2110700 Ⓒ$2260700. O $2010700 $310000 300000 190000 Dec. 31, 2019. $260000 160000 150000 During 2020, $920000 of raw materials were purchased, direct labor costs amounted to $684700, and manufacturing overhead incurred was $736000. If Concord Corporation's cost of goods manufactured for 2020 amounted to $2150700, its cost of goods sold for the year is
Wildhorse Manufacturing Company has the following account balances at year-end: Office supplies Raw materials Work-in-process $6800 23600 $52200. $126900. $120100. $96500. 44300 Finished goods Prepaid insurance 8100 52200 What amount should Wildhorse report as inventories in its balance sheet?
The following information was taken from the accounting records of the Brothers Company for the year ended 31/12/2020: Increase in Raw Material Inventory $ 30,000 Decrease in Finished Goods Inventory $ 70,000 Purchases of Raw Materials during the year $ 860,000| Direct Manufacturing Labor $ 400,000 Applied Manufacturing Overhead $ 600,000| Delivery expenses $ 90,000 Beginning and Ending Work In Process $0 What is the cost of goods manufactured for the year 2020? a. $ 1,890,000 O b. $ 1,800,000 c. $ 1,850,000 O d. $ 1,830,000
Make a system for recording the cost of raw materials using the complete Perpetual method
АСTIVITY: Problem 1: Cost of Goods Manufactured (page 10-11) In addition to the year-end statement of financial position and income statement, the management of Esterlina Gevera Company required the controller to prepare the statement of cost of goods manufactured. During 2019, P361,920 of Raw materials were purchased. Operating cost data and inventory account balances for 2019 follows: Direct labor (10,430 hours at P9.50 per hour) Plant Supervision Indirect labor (20,280 hours at P6.25 per hour) Factory Insurance Factory Utilities Depreciation-Factory Building Depreciation-Factory Utilities Manufacturing Supplies Repairs and Maintenance Selling and Administrative Expenses Raw Materials Inventory, Jan. 1, 2019 Work in Process Inventory, Jan. 1, 2019 P 99,085 42,500 126,750 8,100 29,220 46,200 62,800 9,460 14,980 76,480 26,490 101,640 148,290 24,910 100,400 141,100 Finished Goods Inventory, Jan. 1, 2019 Raw Materials Inventory, Dec. 31, 2019 Work in Process Inventory, Dec. 31, 2019…
Tamarisk Corporation incurred the following costs during 2022. Direct materials used in product Depreciation on factory Property taxes on store Labor costs of assembly-line workers Factory supplies used (a) * Your answer is incorrect. Compute cost of goods manufactured. $115,200 Cost of goods manufactured 57,600 7,200 105,600 22,400 Advertising expense Property taxes on factory Delivery expense Sales commissions Salaries paid to sales clerks Work in process inventory was $11,600 at January 1 and $14,800 at December 31. Finished goods inventory was $57,600 at January 1 and $43,700 at December 31. $43,200 314400 13,600 20,000 33,600 48,000