Activity 1 - ABC Company (De Jesus, MC 19, Chap 10) The ABC Company seeks to streamline the costing system of its Manila plant. It will use a backflush costing system with three trigger points: • Purchase of raw materials • Completion of finished goods • Sale of finished goods Activity 1 - ABC Company (De Jesus, MC 19, Chap 10) There are no beginning inventories. The following data pertain to August 2020: Raw materials purchased Raw materials used P1,760,000 1,700,000 Conversion costs incurred 844,000 Conversion costs allocated to finished goods 800,000 Cost transferred to finished goods 2,500,000 Cost of goods sold 2,380,000 Activity 1 - ABC Company (De Jesus, MC 19, Chap 10) Required: (1) Assume there are no material variances. Compute the balance of Materials and In Process inventory at the end of August 2020. (2) Compute the total finished goods inventory on August 31, 2020.

Activity 1 - ABC Company (De Jesus, MC 19, Chap 10) The ABC Company seeks to streamline the costing system of its Manila plant. It will use a backflush costing system with three trigger points: • Purchase of raw materials • Completion of finished goods • Sale of finished goods Activity 1 - ABC Company (De Jesus, MC 19, Chap 10) There are no beginning inventories. The following data pertain to August 2020: Raw materials purchased Raw materials used P1,760,000 1,700,000 Conversion costs incurred 844,000 Conversion costs allocated to finished goods 800,000 Cost transferred to finished goods 2,500,000 Cost of goods sold 2,380,000 Activity 1 - ABC Company (De Jesus, MC 19, Chap 10) Required: (1) Assume there are no material variances. Compute the balance of Materials and In Process inventory at the end of August 2020. (2) Compute the total finished goods inventory on August 31, 2020.

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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Required information Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] Note: Assume all raw materials were used as direct materials. Beginning of Year End of Year Inventories Raw materials inventory $ 6,300 $ 8,100 Work in process inventory 12, 600 9,300 Finished goods inventory 9, 100 5,800 Activity during current year Raw materials purchased $ 124,100 Direct labor 94,300 Factory overhead 39,900 QS 14-17 (Algo) Schedule of cost of goods manufactured LO P2 Factory overhead of $39,900 consists of Indirect labor of $20,300, Depreciation expense-Factory of $15,300, and Factory utilities of $4,300. Compute total manufacturing costs. Prepare a schedule of cost of goods manufactured.
! Required information [The following information applies to the questions displayed below.] Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Cost per equivalent unit of production Units Total costs + Equivalent units of production (from part 1) Cost per equivalent unit of production 67,000 893,000 770,000 190,000 $ 499,200 88,400 3,340,800 1,679,600 Direct Materials Percent Complete 100% 100% Costs EUP Conversion Percent Complete 80% $ 587,600 2. Compute cost per equivalent unit of production…
(a) Prepare a statement of equivalent production to determine the equivalent units for direct materials (From Moulding & Direct Material Added), and conversion costs and the cost per equivalent unit for direct materials and conversion costs. (b) Calculate the: - Total cost of units completed and transferred to the Packaging Department - Cost of the unexpected losses - Cost of ending work-in-process inventory in the Polishing Department
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es Exercise 8-39 (Algo) Compute Costs per Equivalent Unit: FIFO Method (LO 8-2,5) The following cost information is available for July for the Crest Plant at Calvert Company: Beginning work-in-process inventory Materials cost Conversion cost Total Current costs Materials cost Conversion cost Total $ 59,000 38,000 $ 97,000 $ 150,000 400,000 $ 550,000 Materials are added at the beginning of the process. The following quantities have been recorded: ⚫ Beginning inventory, 43,000 partially complete gallons, 55 percent complete with respect to conversion costs. ⚫ Units started in July, 83,000 gallons. • Units transferred out in July. 93,000 gallons. • Ending inventory, 33,000 gallons, 70 percent complete with respect to conversion costs. Required: Compute the cost per equivalent unit for direct materials and for conversion costs for July using the FIFO method. Note: Round your answers to 2 decimal places. Cost per Equivalent Unit Direct Materials $ 1.19 Conversion Costs $ 4.44
Xia Company manufactures a single product. All raw materials used were direct materials. Current information for company follows: Beginning raw materials inventory Ending raw materials inventory Raw material purchases Beginning work in process inventory Ending work in process inventory Direct labor Total factory overhead Beginning finished goods inventory Ending finished goods inventory The company's cost of direct materials used, cost of goods manufactured and cost of goods sold are: Option A Option B Option C Cost of Materials Used $93,000 $96,000 $90,000 $90,000 Option D Option E $96,000 Multiple Choice O Option A O Option B O Option C O Option D O Option E Cost of Goods Cost of Goods Manufactured Sold $291,000 $291,000 $311,000 $291,000 $311,000 $ 16,000 19,000 93,000 28,000 38,000 118,000 93,000 68,000 48,000 $271,000 $311,000 $271,000 $311,000 $291,000