The following information is from the records of Stretch Limousines, Inc.: Net direct materials purchase cost $225,000 Total direct materials used 275,000 Beginning direct materials inventory 125,000 The ending direct materials inventory is

The following information is from the records of Stretch Limousines, Inc.: Net direct materials purchase cost $225,000 Total direct materials used 275,000 Beginning direct materials inventory 125,000 The ending direct materials inventory is

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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Adelphia Manufacturing issued $70,000 of direct materials and $9,000 of indirect materials for production. Which of the following journal entries would correctly record the transaction? O A. Work-in- Process Inventory Raw Materials Inventory B. Manufacturing Overhead Raw Materials Inventory OC. Work-in - Process Inventory Manufacturing Overhead Raw Materials Inventory D. Raw Materials Inventory Finished Goods Inventory Work-in - Process Inventory 79,000 79,000 70,000 9,000 79,000 79,000 79,000 79,000 70,000 9,000
Assume the following: Purchases of raw materials $ 38,000 Beginning raw materials inventory $ 10,000 Ending raw materials inventory $ 14,000 Direct materials used in production $ 29,600 What was the amount of indirect materials used in production?
The selected amounts that follow were taken from Kandace Corporation's accounting records: Raw material used Direct labor Total manufacturing costs Work in process inventory (1/1) $27,000 $35,000 $104,000 $19,000 Cost of goods manufactured $100,000 Cost of goods available for sale $175,000 Finished goods inventory (12/31) $60,000 Sales revenue $300,000 Selling and administrative expenses $125,000 Income tax expense $18,000 Required: Compute the following: a. Manufacturing overhead. b. Work-in-process inventory, 12/31. c. Finished-goods inventory, 1/1. d. Cost of goods sold.
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.
Manufacturing costs: Direct materials: Direct materials inventory Work-in-process inventory Finished goods inventory Direct materials used during the year amount to $1,096,000 and the cost of goods sold for the year was $1,278,000. Required: Prepare a cost of goods sold statement. Note: Enter your answers in thousands of dollars (I.e., 234,000 should be entered as 234). Materials available Direct materials used Total manufacturing costs Total costs of work-in-process Cost of goods manufactured Finished goods available for sale January 1 (Beginning) ($000) $ 712 Cost of goods sold December 31 (Ending) ($000) $784 1,330 264 1,154 139 BIRWOOD FURNITURE Cost of Goods Sold Statement For the Year Ended December 31 ($000)
The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year. Line Item Description Amount Sales $1,980 Selling expenses 280 Manufacturing overhead 460 Direct labor 400 Administrative expenses 300 Purchases of direct materials 240 Finished goods inventory, beginning 240 Finished goods inventory, ending 320 Direct materials inventory, beginning 80 Direct materials inventory, ending 140 Work in process inventory, beginning 140 Work in process inventory, ending 100 Required: Enter all amounts in thousands of dollars. a. What was the cost of the direct materials used in production during the year?fill in the blank 1 of 1$ thousand b. What was the cost of goods manufactured for the year?fill in the blank 1 of 1$ thousand c. What was the cost of goods sold for the year?fill in the blank 1 of 1$ thousand d. What was the net income for the year?fill in the blank 1 of 1$ thousand
Solve and check answer twice before submit and add explanation and proper calculation
Fortune Company had beginning raw materials inventory of $9,900. During the period, the company purchased $55,500 of raw materials on account. If the ending balance in raw materials was $6,900, the amount of raw materials transferred to work in process is: Multiple Choice $52,500. $58,500. $55,500. $62,400.
please answer correct with reason A manufacturer used $100,000 of direct materials in its Roasting department. The journal entry to record the use of direct materials consists of a: Debit Raw Materials Inventory for $100,000; credit Work in Process Inventory—Roasting for $100,000. Debit Work in Process Inventory—Roasting for $100,000; credit Raw Materials Inventory for $100,000. Debit Work in Process Inventory—Roasting for $100,000; credit Accounts Payable for $100,000. Debit Raw Materials Inventory for $100,000; credit Accounts Payable for $100,000. Debit Work in Process Inventory—Roasting for $100,000; credit Cash for $100,000.
Uniq Works purchased raw materials amounting to $126,000 on account and $17,000 for cash, for a total purchase of $143,000. The materials will be used to manufacture upholstery for furniture manufacturers on a contract basis. Which of the following journal entries correctly records this transaction? OA. Finished Goods Inventory Accounts Payable B. Raw Materials Inventory Cash Accounts Payable OC. Work-in-Process Inventory Accounts Payable OD. Accounts Payable Cash- Raw Materials Inventory 143,000 143,000 143,000 126,000 17,000 143,000 17,000 126,000 143,000 143,000 1e
The following balances (in thousands of dollars) are from the accounts of Birwood Furniture: January 1 (Beginning) ($000) December 31 (Ending) ($000) Direct materials inventory $ 752 $ 824 Work-in-process inventory 1,194 1,370 Finished goods inventory 179 304 Direct materials used during the year amount to $1,496,000 and the cost of goods sold for the year was $1,678,000. Required: Prepare a cost of goods sold statement. Note: Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).