Santos Company is a manufacturing firm that has the following inventory balances: Raw materials Work-in-Process Finished goods $ 1/1/20x1 12/31/20x1 24,000 73,000 27,000 56,000 42,000 The following transactions were recorded for the year: a. Raw materials contain both direct and indirect materials. $416,000 raw materials were purchased. b. Direct material used in production, $370,000; indirect materials used, $40,000. ? c. The following employee costs were incurred: direct labor, $414,000; indirect labor, $60,000; and administrative salaries, $212,000. d. Selling costs, $140,000. e. Factory utility costs, $20,000. f. Depreciation for the year was $81,000 of which $73,000

Santos Company is a manufacturing firm that has the following inventory balances: Raw materials Work-in-Process Finished goods $ 1/1/20x1 12/31/20x1 24,000 73,000 27,000 56,000 42,000 The following transactions were recorded for the year: a. Raw materials contain both direct and indirect materials. $416,000 raw materials were purchased. b. Direct material used in production, $370,000; indirect materials used, $40,000. ? c. The following employee costs were incurred: direct labor, $414,000; indirect labor, $60,000; and administrative salaries, $212,000. d. Selling costs, $140,000. e. Factory utility costs, $20,000. f. Depreciation for the year was $81,000 of which $73,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 1E: Inventory Accounts for a Manufacturing Company Fujita Company produces a single product. Costs...

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Santos Company is a manufacturing firm that has the
following inventory balances:
Raw materials
Work-in-Process
Finished goods
$
1/1/20x1 12/31/20x1
24,000
73,000
27,000
The following transactions were recorded for the year:
a. Raw materials contain both direct and indirect
materials. $416,000 raw materials were purchased.
b. Direct material used in production, $370,000; indirect
materials used, $40,000.
c. The following employee costs were incurred: direct
labor, $414,000; indirect labor, $60,000; and administrative
salaries, $212,000.
d. Selling costs, $140,000.
e. Factory utility costs, $20,000.
f. Depreciation for the year was $81,000 of which $73,000
is related to factory operations and $8,000 is related to
selling, general, and administrative activities.
g. Sales for the year totaled $1,416,000
Required:
56,000
42,000
1. Prepare the schedule of cost of goods manufactured.
2. Prepare the income statement.
3. How would ending inventories be presented in which
financial statement and for what amount?
BER
O HOM
?
P

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Prepare the necessary journal entries from the following information for Welsh Company, which uses a perpetual inventory system. Purchased raw material on account, P56,700. b. Requisitioned raw materials for production as follows: а. Direct materials: 80 percent of purchases; Indirect materials: 15 percent of purchases. Direct labor wages of P33,100 are accrued as are indirect labor wages of P12,500. Overhead incurred and paid for is P66,900. Overhead is applied to production based on 110 percent of direct labor cost. f. С. d. е. Goods costing P97,600 were completed during the period. Goods costing P51,320 were sold on account. g.
Subject: acounting
Prepare the necessary journal entrles from the following Information for Welsh Company, which uses a perpetual Inventory system. Purchased raw material on account, P56,700. b. Requisitioned raw materials for production as follows: a. Direct materials: 80 percent of purchases: Indirect materials: 15 percent of purchases. Direct labor wages of P33,100 are accrued as are indirect labor wages of P12,500. d. Overhead incurred and pald for is P66,900. Overhead is applied to production based on 110 percent of direct labor cost. Goods costing P97,600 were completed during the period. Goods costing P51,320 were sold on account. C. e. f. g. What is the journal entry for transaction (c)? 45,600 a. Work In process Wages payable 45,600 b. 45,600 Wages expense Wages payable 45,600 Work in process inventory Wages expense Wages payable 33,100 12,500 45,600 Work in process inventory Manufacturing overhead Wages payable 33.100 12,500 d. 45-600