Required: Prepare the journal entries to record the above transactions.6. Completed products sold at 50% mark-up on cost1. Purchased raw materials on accountP7-1 Akabanebashi Company uses backflush costing to account for its manufacturing costs.of products, and sale finished goods. During the month of September 2015, the followingThe trigger points for recording of inventories are the purchase of materials, the completiontransactions occurred:raw materials to production2. Requisitioned2 Direct labor costs incurred92,00092,00040,0004. Manufacturing overhead costs6 Cost of goods manufactured60,000192,000

The question is related to Journal entry of an manufacturing concern that uses backflush costing to…

Answered: Required: Prepare the journal entries…

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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The following information about the work-in-process inventory pertains to the Remington Plant for the month of July (all materials are added at the beginning of the process): Beginning work in process (40,000 units): Percentage complete with respect to Costs Ending work in process (56,000 units): Percentage complete with respect to Costs Answer is complete but not entirely correct. Direct Materials Cost per equivalent unit Materials Conversion 3.05 Conversion 100% $ 90,600 4.58 22 100% The Remington Plant started 230,000 units and transferred out 214,000 in July. Materials costs incurred in July were $734,000 and conversion costs were $1,119,000. Required: Compute the cost per equivalent unit for materials and conversion costs using the weighted-average method. Note: Round your answers to 2 decimal places. 20% $ 25,636 77 60%
Compute the total cost of the units-in-process inventory at the end of the period. JKL FABRICATIONS Inc. manufactures frames to bicycles. Each frame passes through three processes: CUTTING, WELDING & PAINTING. In July, the PAINTING Department reportedthe following data. . Beginning WIP consisted of 40,500 units, 95% complete with respect to direct labor and overhead. Costs in the beginning inventory included prime cost, P15,000; applied overhead P12,110 and transferred-in, P31,500. . Cost added to production during the month were direct materials, P72,900; direct labor P64,880; transferred- in P102,060. Overhead was assigned using the following information: Activity Rate Actual Driver Usage Inspection P7.50 per inspection hour 3,000 inspection hours Maintenance P 2 per maintenance hour 1,200 maintenance hours Receiving P10 per receiving…
The following data refer to the month of May for Bonita Components. Fill in the blanks. Direct materials inventory, May 1 Direct materials inventory, May 31 Work-in-process inventory, May 1 Work-in-process inventory, May 31 Finished goods inventory, May 1 Finished goods inventory. May 31 Purchases of direct materials Cost of goods manufactured during the month Total manufacturing costs Cost of goods sold Gross margin Direct labor Direct materials used Manufacturing overhead Sales revenue 3,900 4,000 5,200 2,800 500 25,000 87,000 89,300 22,000 20,500 108,000
The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day. Beginning WIP inventory Direct materials $ 980 Conversion costs 557 Current period costs Direct materials 27,220 Conversion costs 16,803 Quantity information is obtained from the manufacturing records and includes the following. Beginning inventory 800 units (65% complete as to materials,56% complete as to conversion) Current period units started 5,900 units Ending inventory 1,500 units (45% complete as to materials,15% complete as to conversion) Required: a. Compute the equivalent units for the materials and conversion cost calculations. b. Compute the cost per equivalent unit for direct materials and conversion costs.
Better Choice Foods makes a single pocket using two processes. Quality control check takes place during the process, at which point rejected units are separated from good units. The following details relate to production for the month of April 2019, for process 2. Work in process, beginning inventory Transfer from process 1 , 15,000 units valued at $51.40 each Other Manufacturing costs incurred during April: Direct Material added $513,000 Direct Labour $365,000 Manufacturing overhead $211,000 1v. Normal losses were estimated to be 5% of input during the period. Losses from process 2 are deemed to be scrap, and sold at $40 per unit. v. At inspection ,1,750 units were rejected as scrap. These units had reached the following degree of completion: Input material 100% Direct Material added…
Yuan Company has a cycle time of 3 days, uses Raw and In Process account (RIP) and expenses all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted; their conversion components are estimated and inventory account balances are adjusted accordingly. Raw materials is backflushed from RIP to Finished Goods. The following information is for the month of July: RIP beginning, including P20,560 of conversion cost, P42,600; FG beginning, including P22,000 of conversion cost; P45,000; Raw materials purchased on account, P356,000; RIP end, including P15,500 of conversion cost, P22,500; FG end, including P11,600 of conversion cost, P16,000. Direct labor P350,000; Factory overhead P196,150. What is the total amount of cost of goods sold? a.P935,790 b.P951,250 c.P989,750 d.P902,150
The GH company uses a cost accounting system by process and presents the following information for the month of July 2017: Its products are electronic components, manufactured in series for which its Elaboration is paid for by work cards. 37,000 units were started, the Material requisitions were $ 83,000, conversion costs were $ 98,000 and 33,000 units were completed. Starting inventory as of July 1 was 8,500 units with a cost of $ 31,000 of raw material and $ 39,000 conversion costs (100% material advance premium and 80% conversion costs). The ending inventory is 12,500 units, which have 100% raw material and the 40% conversion costs. Based on previous information: a) Prepare the certificates of physical units, that of equivalent production and that of cost allocation. b) Evaluate with the three inventory valuation methods (FIFO, LIFO and CPP) and determine the unit cost of production
Akabanebashi 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 occured: 1. Purchased raw materials on account 92,000 2. Requisitioned raw materials to production 92,000 3. Direct labor cost incurred 40,000 4. Manufacturing overhead costs 60,000 5. Cost of goods manufactured 192,000 5. Completed products sold at 50% markup on cost. Required: Prepare the journal entries to record above transactions
The following information about the work-in-process inventory pertains to the Remington Plant for the month of July (all materials are added at the beginning of the process): Beginning work in process (38,000 units): Percentage complete with respect to Costs Ending work in process (54,000 units): Percentage complete with respect to Costs Materials Conversion 100% $ 89,600 20% $ 24,636 100% 60% ?? ?? The Remington Plant started 228,000 units and transferred out 212,000 in July. Materials costs incurred in July were $714,000 and conversion costs were $1,099,000. Required: Compute the cost per equivalent unit for materials and conversion costs using the weighted-average method. Note: Round your answers to 2 decimal places. Cost per equivalent unit Direct Materials Conversion
Star Plastic company produces plastic cups. table below are the data for April 2019. Star Plastic uses the weighted average method for inventory calculations. raw materials are added at the beginning of the production process while conversion costs are added evenly throughout the process. calculate equivalent units (EU) for DIRECT MATERIALS Physical Units Direct Conversion Materials Costs $ 13,332 Work in process, beginning inventory (April 1) Degree of completion of beginning work in process Started during April Good units completed and transferred out during April Work in process, ending inventory (April 30) Degree of completion of ending work in process Total costs added during April Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage 2,400 $21,240 100% 50% 12,000 10,800 2,160 100% 75% $97,560 $111,408 10% 100% 100% 100% 100%
Subject: accounting
Better Choice Foods makes a single pocket using two processes. Quality control check takes place during the process, at which point rejected units are separated from good units. The following details relate to production for the month of April 2019, for process 2. Work in process, beginning inventory Transfer from process 1 , 15,000 units valued at $51.40 each Other Manufacturing costs incurred during April: Direct Material added $513,000 Direct Labour $365,000 Manufacturing overhead $211,000 1v. Normal losses were estimated to be 5% of input during the period. Losses from process 2 are deemed to be scrap, and sold at $40 per unit. At inspection ,1,750 units were rejected as scrap. These units had reached the following degree of completion: Input material 100% Direct Material added…

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