Accounting records indicate certain balances in the inventory accounts for 20xx. Calculate the following item for 20xx given the information below: Indirect factory costs incurred (manufacturing overhead). Materials inventory Inventory of products in process (Work in Process) Inventory of finished products 1/1/xx 31/12/xx $ 25,000 $12,000 -0- $23,000 $10,000 $25,000 Other data (apply to the period from 1/1/xx to 31/12/xx) are: 1. The prime costs were $393,000. 2. Ten times the amount of what was in stock inventory at the beginning of the year was purchased in materials. 3. Costs of direct labor (direct labor), which represent 40% of the conversion costs, were $325,000. 4. The company generates, on average, a 20% gross profit (Gross margin).

Accounting records indicate certain balances in the inventory accounts for 20xx. Calculate the following item for 20xx given the information below: Indirect factory costs incurred (manufacturing overhead). Materials inventory Inventory of products in process (Work in Process) Inventory of finished products 1/1/xx 31/12/xx $ 25,000 $12,000 -0- $23,000 $10,000 $25,000 Other data (apply to the period from 1/1/xx to 31/12/xx) are: 1. The prime costs were $393,000. 2. Ten times the amount of what was in stock inventory at the beginning of the year was purchased in materials. 3. Costs of direct labor (direct labor), which represent 40% of the conversion costs, were $325,000. 4. The company generates, on average, a 20% gross profit (Gross margin).

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 1E: Inventory Accounts for a Manufacturing Company Fujita Company produces a single product. Costs...

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