Need Correct solution please provide it The following beginning and ending inventory balances apply to ABCCompany's 2023 accounting period:••Raw Materials Inventory: Beginning- $35,000; Ending- $30,000Work in Process Inventory: Beginning- $45,000; Ending- $48,000Finished Goods Inventory: Beginning- $28,000; Ending- $25,000During 2023, the company purchased $325,000 of direct raw materials. Itincurred $240,000 of direct labor costs for the year and allocated$290,000 of manufacturing overhead costs to work in process. There wasno overapplied or underapplied overhead. Revenue from goods soldduring the year was $950,000.Calculate the cost of goods manufactured (amount transferred from WIPto finished goods).

Step 1: Definition of Work-in-Process: Work-in-process inventory consists of partially completed…

Answered: The following beginning and ending…

Cornerstones of Financial Accounting

4th Edition

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Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 70APSA: Inventory Costing and LCM Ortman Enterprises sells a chemical used in various manufacturing...

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Inventory Costing and LCM Ortman Enterprises sells a chemical used in various manufacturing processes. On January 1, 2019, Ortman had 5,000,000 gallons on hand, for which it had paid $0.50 per gallon. During 2019, Ortman made the following purchases: During 2019, Ortman sold 65 000,000 gallons at $0.75 per gallon (35,000,000 gallons were sold on June 29 and 30,000,000 gallons were sold on Nov. 22), leaving an ending inventory of 7,000,000 gallons. Assume that Ortman uses a perpetual inventory system. Ortman uses the lower of cost or market for its inventories, as required by generally accepted accounting principles. Required: 1. Assume that the market value of the chemical is $0.76 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. Assume that the market value of the chemical is $0.58 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
The following information is taking from Wei Min Enterprise for the year ended 31December 2020: Particulars RM Inventory at 1 January 2020:Raw materialsWork in progressFinished goods 25,40031,10023,260Purchases : raw materials 91,535Carriage on raw materials 1,960Direct labour 84,208Office salaries 33,419Rent 5,200Office lighting and heating 4,420Depreciation:Works machineryOffice equipment 10,2002,300Sales 318,622Factory fuel and power 8,120 Prepared by: Puan Siti Nor Junita Mohd Radzi Additional information:i. Rent is to be apportioned: factory 3⁄4; office 1⁄4ii. Inventory at 31 December 2020 was:a. Raw materials RM28,900b. Work in progress RM24,600c. Finished goods RM28,840Required: b) Prepare statement of comprehensive income for the year ended 31 December 2020.
Assume that Distributor Company Inc. has the following inventory item on hand at December 31, 2018:Historical cost : $1,000Replacement cost: $900Estimated Selling price: $ 1,050Estimated costs to complete and sell: $100Required: Write down the journal entry at end of 20181) Follow IFRS2) Follow U.S GAAP
The following are the inventories for the years 2019, 2020, and 2021 for Parry Company:
Har
The inventory and purchases data of Illumina Company for the last quarter of 2023 are as follows Beginning Inventory: At cost - P650,000; At retail - P1,075,000 Purchases during the period: At cost - P2,450,000; At retail - P3,025,000 Freight in - P50,000; Net markup - P400,000; Net markdown - P300,000 Net sales during the period - P3,880,000 Question:If Illumina uses the first-in, first-out basis and ignores the lower of cost and net realizable value rule, what is the ending inventory at estimated cost? a. P320,000 b. P256,000c. P240,000d. P224,000
Q11: What is Music, Inc.’s 2021 Operating Income?
The December 31, 2025 inventory of Sunland Company consisted of four products, for which certain information is provided below. Product Original Cost Estimated Disposal Normal Profit on Replacement Cost Expected Selling Price Cost Sales A $32.00 $30.00 $15.00 $48.00 28% B $50.00 $48.00 $18.00 $56.00 33% C $128.00 $123.00 $33.00 $198.00 38% D $27.00 $23.80 $12.00 $34.00 18% Determine the lower of cost or net realizable value amount for each product. Product A A LCNRV 32 B $ 37.52 C A +A 122.76 $ 27
14. You are given the following details of the company L. for the financial year 1.1.2020-31.12.2020 Beginning inventory of direct materials 120000Purchases of direct materials 228000Direct labor cost 610000direct cost (Initial cost) 780000 The cost of the ending inventory on 31.12.2020 of direct materials is:a. 178000b. 170000c. 150000d.348000
The closing raw materials inventory of Sunuco Manufacturing Company amounted to P345, 000 at December 31, 2018. This total includes an item of raw material (material Sun) with a cost of P100,000 with an estimate net realizable value of P80,000. Immediately after the balance sheet date, material Sun was applied to production and the cost of the finished product were material Sun was applied revealed that its net selling price exceeds the cost of producing the finished goods. As of December 31, 2018, what amount of raw materials inventory should Sunuco Manufacturing Company report?
The inventory of Wildhorse Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 660 $128.00 $135.00 111 1,040 81.00 70.00 112 540 108.00 103.00 113 210 229.50 243.00 120 410 277.00 281.00 121 a 1,700 22.00 1.00 122 280 324.00 317.00 a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.(a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item. Inventory as of December 31, 2020 $enter the Inventory as of December 31 in dollars
Bombers Corporation began operations in 2026. Its ending inventory at cost and at LCNRV at the end of 2025 and 2026 is presented below: Cost Net Realizable Value 12/31/26 $926, 000 $ 922,000 12/31/27 910, 000 920, 000 Prepare the journal entries (if any) required at December 31, 2026, and December 31, 2027, assuming that the inventory is recorded at LCNRV and that Schubert uses a perpetual inventory system and the cost of - goods - sold method.

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