Exercise 2: Flow of Cost - Cost SystemYou are required to compute for the unknowns in the following accounts:MaterialsInventory7,950Purchase Returns750Purchases27,500Direct Materials? Indirect Materials(e) Inventory, end5,100 Work in ProcessInventory13,650Cost of Goods Sold Completed(c)Direct Materials Cost23,500 Direct Labor Cost(a) Factory Overhead Applied (100% of direct labor cost)(b)Inventory11,750 62,150 Finished GoodsInventory 12,500Cost of Goods Sold(d)Cost of Goods Sold Completed?Inventory, end11,250

The cost of goods manufactured includes the cost of goods that are finished during the period. The…

Answered: Exercise 2: Flow of Cost - Cost System…

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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Exercise 2: Flow of Cost - Cost System

You are required to compute for the unknowns in the following accounts:

Materials
Inventory	7,950	Purchase Returns	750
Purchases	27,500	Direct Materials	?
		Indirect Materials	(e)
		Inventory, end	5,100

Work in Process
Inventory	13,650	Cost of Goods Sold Completed	(c)
Direct Materials Cost	23,500
Direct Labor Cost	(a)
Factory Overhead Applied (100% of direct labor cost)	(b)	Inventory	11,750
	62,150

Finished Goods
Inventory	12,500	Cost of Goods Sold	(d)
Cost of Goods Sold Completed	?	Inventory, end	11,250

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