A job order for 500 units of children's party giveaways were processed with costs of P80,000 and P30,000for direct materials and direct labor, respectively. Factory overhead was applied at 50% of direct labor costwhich excludes a 5% provision for spoilage. Prior to transfer to the storeroom, 25 units were found to bespoiled with an estimated market value of P50 per unit.What is the unit cost of the goods transferred to the storeroom if the loss is charged to total production?

Given is: Job units = 500 Direct materials = $80000 Direct labour = $30000 Factory Overhead = 50% of…

Answered: What is the unit cost of the goods…

Business

Accounting

What is the unit cost of the goods transferred to the storeroom if the loss is charged to total production?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which of the following would most likely be a product cost? O A. Salary of VP of sales O B.…

A: Product cost includes all those costs which are directly attributable to the process of converting…

Q: Which of the following income is considered while preparing cost sheet? O a. Interest received…

A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…

Q: Which of the following is the best definition of product costs? a. Product costs are those costs…

A: Cost refers to amount or value which has to be incurred in order to purchase or produce a product…

Q: If the amount of "cost of goods manufactured" during a period exceeds the amount of "total…

Q: What are the inventory accounts used in JIT costing?

A: JIT (Just-In-Time) inventory system is usually implemented in an organization to reduce the amount…

Q: Refer to the T-account below: Debit Balance (4) (6) (9) Balance Work In Process 30,000 (12) 90,000…

A: Work in process ledger represents direct material, direct labor and manufacturing overheads. All the…

Q: Which of the following is not likely to be treated as product cost? Depreciation on the factory…

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Q: Bounty Hunter Corporation has the following transaction for the month of February and uses Job order…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Which of the following is a common fixed cost to the salesdepartments in a department store?a.…

Q: f beginning work in process inventory completed during the perio

A: Solution: Equivalent units of beginning work in Process Inventory Direct material = 0…

Q: Identify the following as fixed costs (F), variable costs (V), or mixed costs(M). cost of goods…

A: Fixed costs are those costs which do not change with change in level of activity. Variable costs…

Q: Under absorption costing, which of the following costs would be included in finished goods…

A: The objective of the question is to identify which costs are included in finished goods inventory…

Q: Which of the following items is an indirect cost? A. The rent of the factory in which products are…

A: explanation : A. The rent of the factory in which products are madeB. The wages of the production…

Q: Which of the following cost includes determining how much to order, cost of invoices, clerical labor…

A: Sunk cost refers to money that has already been spent and which can not be recovered. Sunk costs are…

Q: For a manufacturing company, which of the following is an example of a period cost rather than a…

A: Product cost means the cost of producing one unit of finished goods. It is included in the valuation…

Q: Product costs are also callec Direct costs. Overhead costs

A: Given: 1. Product costs are also called: *Direct costs.Overhead costs.Manufacturing overhead…

Q: what of the costs is an example of a cost that remains the same in total as the number of units…

A: The objective of the question is to identify which among the given costs is a fixed cost. A fixed…

Q: The total cost of direct material, direct labor, and manufacturing overhead transferred from…

A: Inventory- The things that a business keeps on hand in order to make money are referred to as…

Q: If selling and administrative expenses are allocated to different products, they should be reported…

A: Cost refers to the amount spent to acquire a product and item, or the cost used to produce a product…

Q: How do you compute the unadjusted cost of goods sold?

A: Cost of Goods Sold: Once the product is manufactured, that product is delivered to customers. The…

Q: when goods are sold their costs are transferred to finished goods inventory. True or False?

A: The inventory accounts are classified as Work in process, finished goods inventory, raw materials.…

Q: State and classify the items as per Theory of constraints: 1.Depreciation of a machinery 2.Rental…

A: Theory of constraints is a method which was used to identify the constraints which is a key limiting…

Q: 41) The cost of interest, insurance, taxes, depreciation, breakage, warehousing, opportunity costs…

A: Inventory of the business is essential assets of the business. Ordering cost and carrying costs are…

Q: What is the relationship between process costing and the FIFO method of inventory

A: Accounting uses both process costing and the FIFO (First-In, First-Out) technique of inventory, but…

Q: Explain the difference between a product cost and a period cost. How does the product cost of a…

A: The cost that is linked to the product, i.e. the cost that can be traced back to the product and is…

Q: What are the difference between the cost of goods sold of manufacturing and service type businesses…

A: Introduction:

Q: Revenue from sales of the by-product can be listed in the income statement as: a. additional cost…

A: Revenue from sale of by product is shown in the income statement as an additional sales revenue…

Q: A(n)___________________ is also known as an inventoriable cost, because such costs gointo the Work…

A: Inventory in a production will go through different stages which is as follows: Raw…

Q: If a company incurred a significant repairs and maintenance expense for a plant equipment ( used in…

A: Repairs and Maintenance Expense: The cost that is paid to guarantee that an asset continues to…

Q: Product costs are: * Treated in the same manner as period costs Subtracted from cost of goods sold O…

A: Product costs : Product costs are also known as inventoriable costs. These costs that are incurred…

Q: The categories of manufacturing costs comprising the total cost of work in process inventory are…

A: The objective of the question is to identify the categories of manufacturing costs that make up the…

Q: What would cost of good sold be if under or overapplied overhead were closed to cost of goods sold?

A: Under or over applied overhead refers to the adjustments made to the cost of goods sold at the end…

Q: Product costs are: Treated in the same manner as period costs Subtracted from cost of goods sold…

A: There are two types of costs that are incurred in business. One is product costs and other is Period…

Q: The entry to record a transfer of direct materials for use in production would include a debit to…

A: On the issue of direct material for use in production, the work-in-process inventory is debited…

Question

100%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

All of the following are a part of calculating Cost of Goods Sold EXCEPT: O Work In Process Inventory, Beginning Balance O. Finished Goods Inventory, Ending Balance Cost of Goods Manufactured O Finished Goods Inventory, Beginning Balance
How is the cost of units normally lost reflected in the manufacturing cost for the period?
The object of the manufacturing account it ? reached to cost of goods sold. prime cost. cost of raw material purchased. cost of goods manufactured no one
How do you calculate costs of goods sold?
Which of the following is a part of Prime Cost? a. Direct Labour b. Indirect Wages c. Rent of Factory d. Depreciation on Plant
Which of the following would not be considered a component of the "cost" of Goods Sold?a. Salesforce Salariesb. Transportation for purchasec. Import duties or raw materiald. Factory electricity expense
is freight out/transportation out included in the calculation of cost of goods manufactured?
Explain the flow of manufacturing costs through the inventories and into cost of goods sold.
Which of the following costs is NOT capitalized as inventory? a. Rent on Head Office building b. Costs of delivering finished goods c. Manufacturing overhead cost d. Factory amortization
This question is a true or false. When the manufactured goods mar eventually sold the cost of the related sold goods are then transferred from work in process to finished goods.
When does the cost of purchasing raw materials become an expense? When the goods being produced with that inventory are finished. When the company pays for the raw materials purchased. When the goods are moved into the inventory production process. When the finished good produced with those materials is sold.
What does it mean that manufacturing overhead is applied to inventory?