The following inventory data relate to Edwards, Inc.: ............ Inventories Ending Beginning Finished goods . $75,000 $110,000 Work in process. 80,000 70,000 Direct materials....... 95,000 90,000 Revenues and Costs for the Period: Sales .... $900,000 Cost of goods available for sale. 775,000 Total manufacturing costs . 675,000 Factory overhead 175,000 .... Direct materials used 205,000

The following inventory data relate to Edwards, Inc.: ............ Inventories Ending Beginning Finished goods . $75,000 $110,000 Work in process. 80,000 70,000 Direct materials....... 95,000 90,000 Revenues and Costs for the Period: Sales .... $900,000 Cost of goods available for sale. 775,000 Total manufacturing costs . 675,000 Factory overhead 175,000 .... Direct materials used 205,000

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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Crane Company reports the following inventory data for the month of June: Direct materials Work in process Finished goods 1. 2. 3. 4. 5. June 1 $81 190 260 June 30 $120 250 260 Direct materials purchases were $200. Direct costs of production were $240. Variable costs of production were $300. Indirect costs of production were $200. Selling and administrative costs were $240.
The balances in the perpetual inventory accounts of Anditon Manufacturing Corporation at the beginning and end of the current year are as follows: Inventory accounts: Materials Work in Process Finished Goods Inventory Account: Materials Inventory Direct Labor The total dollar amounts debited and credited during the year to the accounts used in recording manufacturing activities are as follows: Manufacturing Overhead Work in Process Inventory Finished Goods Inventory End of Year $ 126,000 109,000 325,000 Beginning of Year $ 222,000 75,000 238,000 Required A Required B Debit Entries $ 2,410,000 1,189,000 893,600 ? ? Credit Entries Required: a. Using these data, compute direct materials purchased, direct materials used, payments of direct labor payrolls, direct labor cost assigned to production, total manufacturing costs charged to the work in process inventory account during the year, the cost of finished goods manufactured, cost of goods sold, the total amount to be classified as…
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Data are as follows: Beginning inventory balances for Work in Process and Finished Goods inventory are P 67,000 and P 54,000, respectively. Ending balances of raw materials, Work in Process and Finished goods inventory are as follows: P 39,000, P 59,000 and P 48,000, respectively. Raw materials purchases is P 45,000. Factory overhead totaled P 7,500 (this is 75% of total Direct labor cost). Total expenses of the company totaled P 11,500 which is 11.5% of total sales. Net income is 31,000 Provide the solution on how to compute the prime cost. P36,000 must be the final answer.