Requirements: 7. Materials inventory8. Finished Goods Ending Inventory EXERCISEScosting method. The following transactions are:a. Materials purchases on account, P100,000.b. Materials issued:Job Order No. 001P15,00000226,00000312,500c. Indirect materials issued, P10,500.d. Breakdown of payroll includes indirect labor, P15,600 and direct laborcharged as follows:Job Order No. 001P10,50000216,0000039,500e. Factory overhead charged to production, 80% of direct labor cost.f. Jobs 001 and 002 are completed.g. Actual factory overhead amounts to P28,400.h. Job 001 is sold for cash at a gross profit of 60% based on selling price.

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Description: Requirements: 7. Materials inventory8. Finished Goods Ending Inventory EXERCISEScosting method. The following transactions are:a. Materials purchases on account, P100,000.b. Materials issued:Job Order No. 001P15,00000226,00000312,500c. Indirect mater

Material inventory means the raw material in hand which is used to make the finished goods. Finished…

Answered: Requirements: 7. Materials inventory…

Business

Accounting

Requirements: 7. Materials inventory 8. Finished Goods Ending Inventory

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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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Requirements:

7. Materials inventory

8. Finished Goods Ending Inventory

EXERCISES
costing method. The following transactions are:
a. Materials purchases on account, P100,000.
b. Materials issued:
Job Order No. 001
P15,000
002
26,000
003
12,500
c. Indirect materials issued, P10,500.
d. Breakdown of payroll includes indirect labor, P15,600 and direct labor
charged as follows:
Job Order No. 001
P10,500
002
16,000
003
9,500
e. Factory overhead charged to production, 80% of direct labor cost.
f. Jobs 001 and 002 are completed.
g. Actual factory overhead amounts to P28,400.
h. Job 001 is sold for cash at a gross profit of 60% based on selling price.

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