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FINANCIAL ACCOUNTING
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 date were provided by Madilim Co.: WIP, beg Materials, WIP, beg Materials, chemicals (? complete) Materials, cans (? Complete) Labor (75% incomplete) Overhead (75% incomplete) Started during the 4,000 gallons WIP, end Materials, chemicals (100% complete) Materials, cans (? Complete) Labor (20% incomplete) Overhead (20% incomplete) P456,000 chemicals Labor - P100 per hour Overhead P62,500 P18,750 Cost added P2,284,000 21,000 month gallons 20,000 Transferred to shipping department during the Materials, cans P70,000 gallons month Labor (P100 per hour) Overhead P350,000 P105,000 Production begins with the blending of various chemicals, which are added at the beginning of the process and ends with canning of the product. Canning occurs when the mixtures reach the 90% stage of completion. The gallon cans are then transferred to the shipping department for crafting and shipment. Direct labor and overhead are added continuously throughout the process. Overhead is allocated on the basis of direct labor hours at the rate of P30 per hour. Using FIFO compute for the cost of the WIP, end.
Transcribed Image Text:The following date were provided by Madilim Co.: WIP, beg Materials, WIP, beg Materials, chemicals (? complete) Materials, cans (? Complete) Labor (75% incomplete) Overhead (75% incomplete) Started during the 4,000 gallons WIP, end Materials, chemicals (100% complete) Materials, cans (? Complete) Labor (20% incomplete) Overhead (20% incomplete) P456,000 chemicals Labor - P100 per hour Overhead P62,500 P18,750 Cost added P2,284,000 21,000 month gallons 20,000 Transferred to shipping department during the Materials, cans P70,000 gallons month Labor (P100 per hour) Overhead P350,000 P105,000 Production begins with the blending of various chemicals, which are added at the beginning of the process and ends with canning of the product. Canning occurs when the mixtures reach the 90% stage of completion. The gallon cans are then transferred to the shipping department for crafting and shipment. Direct labor and overhead are added continuously throughout the process. Overhead is allocated on the basis of direct labor hours at the rate of P30 per hour. Using FIFO compute for the cost of the WIP, end.
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