Bedrock Company reported a December 31 ending inventory balance of $412,000. The following additional informationis also available:• The ending inventory balance of $412,000 included $72,000 of consigned inventory for which Bedrock was theconsignor.• The ending inventory balance of $412,000 included $22,000 of office supplies that were stored in the warehouseand were to be used by the company's supervisors and managers during the coming year.Based on this information, the correct balance for ending inventory on December 31 is:

Inventory: Inventory are raw materials, work-in-process, finished goods and other stocks. The stock…

Answered: Bedrock Company reported a December 31…

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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Rundle Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials $ 55,900 Work in Process 83,000 Finished Goods 26,500 During the accounting period, Rundle purchased $239,100 of raw materials and issued $249,800 of materials to the production department. Direct labor costs for the period amounted to $324,000, and manufacturing overhead of $47,300 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,400 to produce were completed and transferred to Finished Goods Inventory. Goods costing $600,700 were sold for $800,200 during the period. Selling and administrative expenses amounted to $71,600. Required a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. b1. Prepare a schedule of cost of goods manufactured and sold. b2. Prepare an income statement.
Hendrix & Franks Company had the following beginning and ending inventory balances for the current year ended December 31: Materials Work in Process Finished Goods $102,000 $97,500 $117,150 January 1 $128,500 $11,000 19,800 23,100 December 31 In addition, direct labor costs of $33,000 were incurred, manufacturing overhead equaled $46,200, materials purchased were $29,700, and selling and administrative costs were $24,200. Hendrix & Franks Co. sold 27,500 units of product during the year at a sales price of $5.25 per unit. What was the amount of cost of goods sold for the year? $ 8,800 18,700 18,150
The Phoenix Corporation's fiscal year ends on December 31. Phoenix determines inventory quantity by a physical count of inventory on hand at the close of business on December 31. The company's controller has asked for your help in deciding if the following items should be included in the year-end inventory count. Required: Determine if each of the items below should be included or excluded from the company's year-end inventory. Item Included/Excluded 1 Merchandise held on consignment for Trout Creek Clothing. 2. Goods shipped f.o.b. destination on December 28 that arrived at the customer's location on January 4. 3. Goods purchased from a vendor shipped f.o.b. shipping point on December 26 that arrived on January 3. 4. Goods shipped f.o.b. shipping point on December 28 that arrived at the customer's location on January 5. 5. Phoenix had merchandise on consignment at Lisa's Markets, Inc. 6. Goods purchased from a vendor shipped f.o.b. destination on December 27 that arrived on January 3.…
Stuart Corporation began fiscal Year 2 with the following balances in its inventory accounts. $ 55,600 Raw Materials Work in Process Finished Goods 82,300 26,300 During the accounting period, Stuart purchased $238,700 of raw materials and issued $249,100 of materials to the production department. Direct labor costs for the period amounted to $323,600, and manufacturing overhead of $47,300 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,300 to produce were completed and transferred to Finished Goods Inventory. Goods costing $600,900 were sold for $801,000 during the period. Selling and administrative expenses amounted to $70,500. Required a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. b1. Prepare a schedule of cost of goods manufactured and sold. b2. Prepare an income statement.
Crimson reported inventory amounting to P1,727,500 in its December 31, 2022 statement of financial position. Upon verification of the inventory ledger, the following compositions were found Item 1 Raw materials inventory in the warehouse 2 Office supplies 3 Work in process inventory 4 Shipping cartons 5 Newly finished goods inventories in the factory, including goods specitically segregated per sales contract (considered sold), P50,000 6 Finished goods out on approval, at cost 7 Advances to supplier for materials ordered 8 Damaged and unsalable finished goods, at cost 9 Merchandise items in the showroom at 50% on cost 10 Prepaid insurance on inventories 11 Goods held on consignment, at sales price (cost is P37,500) 12 Merchandise in the hand of the agents including 40% profit on sales 13 Merchandise inventories in transit to customers, FOB Destination at cost 14 Raw materials in transit, FOB origin 15 Goods returned by custormer in good condition 16 Items in receiving department,…
Dale Corporation began fiscal year 2014 with the following balances in its inventory accounts. Raw Materials $ 54,100 Work in Process 82,100 Finished Goods 26,400 During the accounting period, Dale purchased $238,400 of raw materials and issued $249,000 of materials to the production department. Direct labor costs for the period amounted to $323,800, and manufacturing overhead of $46,900 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,300 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,700 were sold for $801,300 during the period. Selling and administrative expenses amounted to $70,200. Required: a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. Ending Balance Raw materials Work in process Finished goods b. Prepare a…
P2-4A. Journal Entries Taylor Manufacturing Company uses the perpetual inventory system to record trans- actions related to its manufacturing inventories. The following transactions occurred during March: Mar. 6 Recorded the payroll: $5,000 of direct labor and $1,000 of indirect labor. 8 Received $7,000 of materials and components that had been ordered on account. 10 Completed product costing $11,000 and transferred it to the warehouse. Requisitioned $2,500 of materials for use in the factory; $2,000 was used as direct materials and the remainder was used as indirect materials. 12 Sold on account product costing $1,500 for $2,250. 15 Applied $3,000 of manufacturing overhead cost to the product currently being worked on. 21 Paid $250 cash for a special material component that was shipped via overnight delivery. 27 Sold product costing $1,450 for $2,500 cash. Required Prepare general journal entries to record these transactions.
During FY 2018 Bay Manufacturing had total manufacturing costs are $442,000. Their cost of goods manufactured for the year was $475,000. The January 1, 2019 balance of the Work-in-Process Inventory is $51,000. Use this information to give an example of the dollar amount of the FY 2018 beginning Work-in-Process Inventory.
Jackal Company reported that a flood recently destroyed many of the financial records. The entity used an average cost inventory valuation system. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 60,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 Day Units Unit Cost Total Cost 5-Jul 55,000 5.10 280,500 11-Jul (53,000) 5.00 265,000 15-Jul 45,000 5.50 247,500 16-Jul 47,000 5.30 249,100 1. What is the number of units on July 1? 2. Refer to Jackal Company. How many…
Wildhorse Company took a physical inventory on December 31 and determined that goods costing $676,000 were on hand. Not included in the physical count were $9,000 of goods purchased from Sandhill Corporation, f.o.b. shipping point, and $29,000 of goods sold to Ro-Ro Company for $37,000, f.o.b. destination. Both the Sandhill purchase and the Ro-Ro sale were in transit at year-end. What amount should Wildhorse report as its December 31 inventory? December 31 Inventory $ %24
Music, Inc. had the following beginning and ending values in its three inventory accounts: Jan 1, 2021 Dec. 31, 2021 Raw Materials Inventory $500 $800 Work-in-Progress Inventory $1,200 $1,300 Finished Goods Inventory $600 $750 Additional information for the year ending December 31, 2021: Manufacturing costs: $2,875 Sales revenue: $15,900 Selling & Admin expenses: $3,600 Interest expense: $160 Income tax rate: 20% What amount will Music, Inc. report as 2021 Cost of Goods Sold on its year ending 2021 Income Statement? Question 8 options: $2,875 $2,775 $2,850 $2,625
Fancy Iron began August with 45 units of iron inventory that cost $24 each. During August, the company completed the following inventory transactions: Requirement 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) - X Cost of Goods Sold Inventory on Hand Requirements Unit Cost Unit Cost Purchases Unit Date Quantity Cost Aug. 1 3 81 21 30 Totals Total Cost Quantity Total Cost Quantity C Total Cost 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. 2. Prepare a perpetual…

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