PROBLEMS P7-1 Akabanebashi Company uses backflush costing to account for its manufacturing costs The trigger points for recording of inventories are the purchase of materials, the completiom of products, and sale finished goods. During the month of September 2015, the following transactions occurred: 1. Purchased raw materials on account 92,000 2. Requisitioned raw materials to production 92,000 3. Direct labor costs incurred 40,000 4. Manufacturing overhead costs 60,000 5. Cost of goods manufactured 6. Completed products sold at 50% mark-up on cost 192,000 Required: Prepare the journal entries to řecord the above transactions.
PROBLEMS P7-1 Akabanebashi Company uses backflush costing to account for its manufacturing costs The trigger points for recording of inventories are the purchase of materials, the completiom of products, and sale finished goods. During the month of September 2015, the following transactions occurred: 1. Purchased raw materials on account 92,000 2. Requisitioned raw materials to production 92,000 3. Direct labor costs incurred 40,000 4. Manufacturing overhead costs 60,000 5. Cost of goods manufactured 6. Completed products sold at 50% mark-up on cost 192,000 Required: Prepare the journal entries to řecord the above transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![PROBLEMS
P7-1 Akabanebashi Company uses backflush costing to account for its manufacturing costs.
The trigger points for recording of inventories are the purchase of materials, the completion
of products, and sale finished goods. During the month of September 2015, the following
transactions occurred:
1. Purchased raw materials on account
92,000
2. Requisitioned raw materials to production
92,000
3. Direct labor costs incurred
40,000
4. Manufacturing overhead costs
5. Cost of goods manufactured
6. Completed products sold at 50% mark-up on cost
60,000
192,000
Required: Prepare the journal entries to record the above transactions.
P7-2 The production department of Ted Milk shows following transaction in month of September.
Company adopted JIT system few months back.
1.
Material purchased on credit for P20,000
2.
All material was used during production
3.
Direct labors cost incurred for P6,000
4.
Overhead charged to production was P20,000
5.
Units completed costing P45,500
6.
Units sold for P45,000
Required: Computer for the following:
а.
Finished goods inventory
b.
Work in process inventory
P7-3 Johnson Textiles Company employs Just in Time operating system with backflush costing,
During the month of July Direct material costing P505,000 was used for completed work
with conversion cost of P700,000.
process inventory account.
At the end of the month P200,000 was assigned to work
Finished goods inventory ending balance was P230,000.
Required: Computer for the following:
а.
Amount charged to cost of goods sold
b.
Ending balance of cost of goods sold](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faba1662c-2317-4271-81bc-2b94711d9ccd%2F0abf67db-3db1-43e1-a16f-2fce8d0c72ad%2F1n273td_processed.png&w=3840&q=75)
Transcribed Image Text:PROBLEMS
P7-1 Akabanebashi Company uses backflush costing to account for its manufacturing costs.
The trigger points for recording of inventories are the purchase of materials, the completion
of products, and sale finished goods. During the month of September 2015, the following
transactions occurred:
1. Purchased raw materials on account
92,000
2. Requisitioned raw materials to production
92,000
3. Direct labor costs incurred
40,000
4. Manufacturing overhead costs
5. Cost of goods manufactured
6. Completed products sold at 50% mark-up on cost
60,000
192,000
Required: Prepare the journal entries to record the above transactions.
P7-2 The production department of Ted Milk shows following transaction in month of September.
Company adopted JIT system few months back.
1.
Material purchased on credit for P20,000
2.
All material was used during production
3.
Direct labors cost incurred for P6,000
4.
Overhead charged to production was P20,000
5.
Units completed costing P45,500
6.
Units sold for P45,000
Required: Computer for the following:
а.
Finished goods inventory
b.
Work in process inventory
P7-3 Johnson Textiles Company employs Just in Time operating system with backflush costing,
During the month of July Direct material costing P505,000 was used for completed work
with conversion cost of P700,000.
process inventory account.
At the end of the month P200,000 was assigned to work
Finished goods inventory ending balance was P230,000.
Required: Computer for the following:
а.
Amount charged to cost of goods sold
b.
Ending balance of cost of goods sold
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