Red Company uses normal costing. During the year ended December 31, 2019, the following informationwere made available:Total manufacturing costs incurred during the year, P2,200,00o;Cost of goods manufactured amounted to P1,940,000;Factory Overhead is applied to production at 80% of direct labor cost;Applied Factory Overhead during the year amounted to 30% of total manufacturing cost;Beginning work-in-process inventory was 75% of the work-in-process at the end.Compute for the cost of direct materials used for the year ended December 31, 2019.

The manufacturing costs include the total cost of production incurred during the period.

Answered: were made available: - Total…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hemlock Company developed the following data for the current year: Beginning work in process inventory $275,000 Direct materials used 160,000 Actual overhead 340,000 Overhead applied 225,000 Cost of goods manufactured 265,000 Total manufacturing costs 860,000 Hemlock Company's direct labor cost for the year is?
In the manufacture of 9,400 units of a product, direct materials cost incurred was $177,400, direct labor cost incurred was $106,100, and applied factory overhead was $43,600. What is the total conversion cost? Oa..$149,700 Ob. $327,100 Oc. $43,600 Od. $177,400
The following cost data relate to the manufacturing activities of ABC Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 16,900 Indirect labor 149,000 Property taxes, factory 9,900 Utilities, factory 89,000 Depreciation, factory 316,900 Insurance, factory 11,900 Total actual manufacturing overhead costs incurred $ 593,600 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 419,000 Direct labor cost $ 79,000 Inventories: Raw materials, beginning $ 21,900 Raw materials, ending $ 31,900 Work in process, beginning $ 41,900 Work in process, ending $ 71,900 The company uses a predetermined overhead rate of $28 per machine-hour to apply overhead cost to jobs. A total of 21,600 machine-hours were used during the year. Required: 1. Compute the amount of underapplied or overapplied overhead cost for the year. 2. Prepare a schedule of cost of…
BFAR Company used a normal costing system and reported a cost of goods manufactured of P260,000, with the firm's year-end Statement of Financial Position revealing work in process and finished goods of P35,000 and P67,000, respectively. Additional information disclosed raw materials used in the production of P40,000 and direct labor of P70,000. Actual manufacturing overhead incurred was P120,000 while applied overhead to production was P140,000. Compute BFAR's beginning work in process.
Compute conversion costs given the following data: direct materials, $362, 300; direct labor, $ 208, 200; factory overhead, $188,400 and selling expenses, $39,400. a. $149,000 b. $ 396, 600 c. $550, 700 d. $758,900
The following production and cost per EUP data are available for Vendome Corp for February: Units Completed during February 390,000 Units in ending inventory (100% complete as to direct material. 30% complete as to direct labor; 25% complete as to overhead) 55,500 Units completed during February 390,000 Direct Materials per EUP 7.50 Direct Labor per EUP 9 Overhead cost per unit 10.20 Use Weighted Average Method Questions: 1. What is the cost of the goods completed during February? 2. What is the cost of ending inventory at February 28? 3. What is the total cost to account for during February?
Transaction: Applied fixed manufacturing overhead to work in process inventory using the fixed portion of the predetermined overhead rate multiplied by the number of direct labor hours allowed so manufacture 125,000 units. Actual fixed manufacturing overhead costs for the year were $2,450,000. Of this total $1,300,000 related to items such as insurance, utilities and salaried indirect laborers that were all paid in cash and $1,150,000 related to depreciation of equipment. Required: Prepare a journal entry Fixed MFG Overhead Standard Hours: 2 hours Standard Price: $2 Standard Cost $4 Calculate the fixed overhead variances
At Allen Company, manufacturing overhead is applied based on direct labor hours. Overhead was estimated to be $540,000 and direct labor hours were estimated to be 360,000. Actual direct labor hours and actual direct labor costs for the year amounted to 400,000 hours and $700,000. In addition, Allen Company incurred the following actual costs during the year: Administrative expenses, $100,000 Depreciation expense on fixed assets, $500,000 (80% of the depreciation expense was related to manufacturing activities) Indirect material costs, $25,000 Indirect labor costs, $45,000 Utility expense on the manufacturing facility, $125,000 Insurance expense on the manufacturing facility, $35,000 Marketing expenses, $75,000 Sales & promotion expenses, $25,000 Allen Company had the following inventory balances at the beginning and end of the year: January 1 December 31 Finished goods $450,000 $675,000 Work in process 600,000…
In the manufacture of 9,700 units of a product, direct materials cost incurred was $171,100, direct labor cost incurred was $108,700, and applied factory overhead was $44,500. The total conversion cost is a. $324,300 b. $153,200 c. $44,500 d. $171,100
Carla Vista Manufacturing Inc. provides you with the following data for the month of June:Prime costs were $ 196,000, conversion costs were $140, 500, andtotal manufacturing costs incurred were $265,500. Beginning and ending work in process inventories were equal. Selling and administrative costs were $ 262,100. (a)What were the total costs of direct materials used, direct labour, and manufacturing overhead? Direct material costs$Direct labour costsManufacturing overhead costs
Dani Corp incurred costs of P50,000 for direct materials (raw) purchased. Direct labor was P60,000 and factory overhead was P35,000 for May. Inventories were as follows: Raw materials beginning P14,000; raw materials ending P10,000 Work-in-process beginning 24,000; work-in-process ending 36,000 Finished goods beginning 10,000; finished goods ending 25,000 Required: Calculate the cost of goods manufactured for May
The following information provides the amount of cost incurred in Merch for the cost items indicated. During March 8,500 units of the firm's single product were manufactured Factory depreciation exper rect Ser Production servi Сперитет гента и an is Required 141.200 a. How much cost would you expect to be incurred for each of these items during Apr when 9.700 units of the product are planned for production? (Do not round intermedine calcul Factory on exper D Potion superviso Frey 1 of 13 Next >

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS