Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 2, Problem 2.44P
Missing records, computing inventory costs. Ron Howard recently took over as the controller of Johnson Brothers Manufacturing. Last month, the previous controller left the company with little notice and left the accounting records in disarray. Ron needs the ending inventory balances to report first-quarter numbers.
For the previous month (March 2017) Ron was able to piece together the following information:
| Direct materials purchased | $120,000 |
| Work-in-process inventory, 3/1/2017 | $ 35,000 |
| Direct materials inventory, 3/1/2017 | $ 12,500 |
| Finished-goods inventory, 3/1/2017 | $160,000 |
| Conversion costs | $330,000 |
| Total |
$420,000 |
| Cost of goods manufactured | 4 times direct materials used |
| Gross margin as a percentage of revenues | 20% |
| Revenues | $518,750 |
Calculate the cost of:
- 1. Finished-goods inventory, 3/31/2017
Required
- 2. Work-in-process inventory, 3/31/2017
- 3. Direct materials inventory, 3/31/2017
Expert Solution & Answer
Learn your wayIncludes step-by-step video
schedule03:42
Students have asked these similar questions
2
Please do not give solution in image format and show all calculation thanku
dog
subject-Accounting
Chapter 2 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 2 - Define cost object and give three examples.Ch. 2 - Define direct costs and indirect costs.Ch. 2 - Prob. 2.3QCh. 2 - Name three factors that will affect the...Ch. 2 - Define variable cost and fixed cost. Give an...Ch. 2 - What is a cost driver? Give one example.Ch. 2 - What is the relevant range? What role does the...Ch. 2 - Explain why unit costs must often be interpreted...Ch. 2 - Prob. 2.9QCh. 2 - What are three different types of inventory that...
Ch. 2 - Distinguish between inventoriable costs and period...Ch. 2 - Define the following: direct material costs,...Ch. 2 - Describe the overtime-premium and idle-time...Ch. 2 - Define product cost. Describe three different...Ch. 2 - What are three common features of cost accounting...Ch. 2 - Prob. 2.16MCQCh. 2 - Comprehensive Care Nursing Home is required by...Ch. 2 - Frisco Corporation is analyzing its fixed and...Ch. 2 - Year 1 financial data for the ABC Company is as...Ch. 2 - The following information was extracted from the...Ch. 2 - Computing and interpreting manufacturing unit...Ch. 2 - Direct, indirect, fixed, and variable costs....Ch. 2 - Classification of costs, service sector. Market...Ch. 2 - Classification of costs, merchandising sector....Ch. 2 - Classification of costs, manufacturing sector. The...Ch. 2 - Variable costs, fixed costs, total costs. Bridget...Ch. 2 - Variable and Fixed Costs. Consolidated Motors...Ch. 2 - Variable costs, fixed costs, relevant range. Gummy...Ch. 2 - Prob. 2.29ECh. 2 - Cost drivers and functions. The representative...Ch. 2 - Total costs and unit costs, service setting....Ch. 2 - Total and unit cost, decision making. Gayles...Ch. 2 - Inventoriable costs versus period costs. Each of...Ch. 2 - Computing cost of goods purchased and cost of...Ch. 2 - Cost of goods purchased, cost of goods sold, and...Ch. 2 - Flow of Inventoriable Costs. Renkas Heaters...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Interpretation of statements (continuation of...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Terminology, interpretation of statements...Ch. 2 - Labor cost, overtime, and idle time. David...Ch. 2 - Missing records, computing inventory costs. Ron...Ch. 2 - Comprehensive problem on unit costs, product...Ch. 2 - Prob. 2.46PCh. 2 - Cost classification; ethics. Paul Howard, the new...Ch. 2 - Prob. 2.48P
Additional Business Textbook Solutions
Find more solutions based on key concepts
Name two types of adjusting journal entries that are commonly made before preparing financial statements? Expla...
Principles of Accounting Volume 1
Discussion Questions 1. What characteristics of the product or manufacturing process would lead a company to us...
Managerial Accounting (4th Edition)
S6-2 Determining inventory costing methods
Ward Hard ware does not expect costs to change dramatically and want...
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Describe the three steps of the high-low method.
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Prepare income statements (Learning Objective 5) Part One: In 2015, Fran Lexa opened Frans Flowers, a small sho...
Managerial Accounting (5th Edition)
LIFO, Conversion to FIFO. Inventory transactions tor Jack Franklin stores are summarized in the following table...
Intermediate Accounting (2nd Edition)
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
- Required: 1. Assume there was no beginning inventory of any kind on January 1, 2017. During January, 5,000 cameras were placed into production and all 5,000 were fully completed at the end of the month. What is the unit cost of an assembled camera in January? 2. Assume that during February 5,000 cameras are placed into production. Further assume the same total assembly costs for January are also incurred in February, but only 4,000 cameras are fully completed at the end of the month. All direct materials have been added to the remaining 1,000 cameras. However, on average, these remaining 1,000 cameras are only 60% complete as to conversion costs. (a) What are the equivalent units for direct materials and conversion costs and their respective costs per equivalent unit for February? (b) What is the unit cost of an assembled camera in February 2017? 3. Explain the difference in vour answers to requirements 1 and 2.arrow_forwardDale Corporation began fiscal year 2014 with the following balances in its inventory accounts. Raw Materials $ 54,100 Work in Process 82,100 Finished Goods 26,400 During the accounting period, Dale purchased $238,400 of raw materials and issued $249,000 of materials to the production department. Direct labor costs for the period amounted to $323,800, and manufacturing overhead of $46,900 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,300 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,700 were sold for $801,300 during the period. Selling and administrative expenses amounted to $70,200. Required: a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. Ending Balance Raw materials Work in process Finished goods b. Prepare a…arrow_forwardThe following balances are known for A Company at the begining of the year: Direct materials inventory $ 24,000 Work-in-process inventory 9,000 Finished goods inventory 22,000 Manufacturing overhead control 33,000 Accounts payable 12,000 In the beginning of June, some of the current data were lost and you have been asked to help the finance department to reconstruct the data. After Reviewing old documents and interviewing employees you have generated the following additional information: The production superintendent’’s job cost sheets indicated that materials of $5,200 were included in the June 30 Work-in-Process Inventory as well as 300 direct labor-hours had been paid at $12.00 per hour for the jobs in process on June 30. The account of Accounts Payable is the only account for direct material purchases. The Clerk remembers clearly that the balance in the Accounts Payable on June 30 was…arrow_forward
- Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardI'm having trouble finding the value for the inventory balance as of january 31st for the cost of finished goods.arrow_forwardPlease do not give solution in image format thankuarrow_forward
- At the end of February the inventory accounts of Bentley Inc. showed that the manufacturing overhead applied during the month could be traced to:Work in Process $8,320Finished Goods $15,600Cost of Goods Sold $30,080 Manufacturing overhead for the month was overapplied by $1535. What is the amount of the overhead actually incurred by Bentley in February? (Round your answer to the nearest $1.00, use positive numbers only)arrow_forwardThe owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following is an excerpt from the final report: Net revenue Cost of goods sold Value of production materials on hand i Value of work-in-process inventory Value of finished goods on hand Inventory turnover ratio $365,000 316,000 42,500 a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.) Weeks of supply 41,000 14,500 11.2 per year b. Compute the weeks of supply (WS). (Do not round intermediate calculations: Round your answer to 1 decimal place.)arrow_forwardA flood recently destroyed many of the financial records of Rizal Company. The company uses an average cost inventory valuation system. Rizal makes a physical count at the end of each month to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 - 60,000 units; Total cost of units available for sale in July - ₱1,452,100; Cost of goods sold during July - ₱1,164,100; Cost of inventory, July 1 - ₱ 4.00 per unit; Gross profit on sales for July - ₱ 935,900. Purchases during July are: July 5 - 55,000 units @₱5.10/unit; July 11 - 53,000 units @₱5.00/unit; July 15 - 45,000 @₱5.50/unit; July 16 - 47,000 units @₱5.30/unit. How many units are there as of July 1? Referring to the question above, how many units were sold during the month of July? Refer to the information above, What is the cost of the inventory on July 31?arrow_forward
- A flood recently destroyed many of the financial records of Yakal Company. The company uses an average cost inventory valuation system. Yakal makes a physical count at the end of each month to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 Total cost of units available for sale in July Cost of goods sold during July Cost of beginning inventory, July 1 Gross profit on sales for July 60,000 units P1,452,100 P 1,164,100 P4.00 per unit P 935,900 July Purchases Unit Cost Units 55,000 53,000 45,000 47,000 Total Cost $ 280,500 265,000 247,500 249,100 Date July 5 July 11 July 15 July 16 5.10 5.00 5.50 5.30 Required: 1. Determine the number of units in the July 1 inventory 2. Determine the number of units sold during the month of July 3. Determine the cost of the inventory on July 31arrow_forwardRecord the amount in each account affected by the transactions/adjustments below. Note: These are not complete journal entries not all rows will have more than one entry and they will not balance like previous transactions. Beginning Inventory Purchased $10,000 of raw materials Transferred $13,000 direct materials to factory for production. Production required $7,200 of direct labor. Applied overhead at $2 per each dollar of direct Completed work on production costing $32,120. Sold products that cost $17,530 to produce for $35,000 in sales. Actual overhead totaled $16,000. Ending Balances Raw Materials $12,500 Work In Process $3,600 Finished Goods Cost of Goods Sold $5,980 Sales $0 $0 $12,500 $3,600 $5,980 $0 $0arrow_forwardFor each of the following independent situations, calculate the missing values: 1. The Belen plant purchased 78,300 of direct materials during June. Beginning direct materials inventory was 2,500, and direct materials used in production were 73,500. What is ending direct materials inventory? 2. Forster Company produced 14,000 units at an average cost of 5.90 each. The beginning inventory of finished goods was 3,422. (The average unit cost was 5.90.) Forster sold 14,120 units. How many units remain in ending finished goods inventory? 3. Beginning work in process (WIP) was 116,000, and ending WIP was 117,300. If total manufacturing costs were 349,000, what was the cost of goods manufactured? 4. If the conversion cost is 84 per unit, the prime cost is 55, and the manufacturing cost per unit is 105, what is the direct materials cost per unit? 5. Total manufacturing costs for August were 412,000. Prime cost was 64,000, and beginning WIP was 76,000. The cost of goods manufactured was 434,000. Calculate the cost of overhead for August and the cost of ending WIP.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
INVENTORY & COST OF GOODS SOLD; Author: Accounting Stuff;https://www.youtube.com/watch?v=OB6RDzqvNbk;License: Standard Youtube License