Accounting records indicate certain balances in the inventory accounts for 20yy. Calculate the following item for 20yy given the information below: Indirect factory costs incurred (manufacturing overhead). Item Materials inventory 1/1/yy 31/12/yy $30,000 $15,000 Inventory of products in process (Work in Process) $0 $20,000 Inventory of finished products $12,000 $30,000 Other data (apply to the period from 1/1/yy to 31/12/yy) are: 1. The prime costs were $400,000. 2. Eight 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 45% of the conversion costs, were $350,000. 4. The company generates, on average, a 25% gross profit (Gross margin)

Accounting records indicate certain balances in the inventory accounts for 20yy. Calculate the following item for 20yy given the information below: Indirect factory costs incurred (manufacturing overhead). Item Materials inventory 1/1/yy 31/12/yy $30,000 $15,000 Inventory of products in process (Work in Process) $0 $20,000 Inventory of finished products $12,000 $30,000 Other data (apply to the period from 1/1/yy to 31/12/yy) are: 1. The prime costs were $400,000. 2. Eight 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 45% of the conversion costs, were $350,000. 4. The company generates, on average, a 25% gross profit (Gross margin)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 13P: Webster Company uses backflush costing to account for its manufacturing costs. The trigger points...

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