Explain the cost flow from the raw materials to cost of goods sold in a manufacturing business.

Question

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Answer 1

Question

Chapter 4, Problem 1Q

To determine

Explain the cost flow from the raw materials to cost of goods sold in a manufacturing business.

Expert Solution & Answer

Explanation of Solution

Cost flow from the raw materials to cost of goods sold.

The cost of raw materials for production is transferred from the raw materials account to work-in process account. The manufacturing cost and the overhead cost is allocated to production by adding to the work-in process inventory account. Overhead cost is allocated according to the cost system. While the manufacturing process is completed, work is transferred to finished goods inventory, and costs moved from the work-in process inventory account to the finished goods inventory account. At last, goods are sold at the cost transferred from the finished goods inventory account to cost of goods sold.

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Answer 2

Question

Chapter 4, Problem 1Q

To determine

Explain the cost flow from the raw materials to cost of goods sold in a manufacturing business.

Expert Solution & Answer

Explanation of Solution

Cost flow from the raw materials to cost of goods sold.

The cost of raw materials for production is transferred from the raw materials account to work-in process account. The manufacturing cost and the overhead cost is allocated to production by adding to the work-in process inventory account. Overhead cost is allocated according to the cost system. While the manufacturing process is completed, work is transferred to finished goods inventory, and costs moved from the work-in process inventory account to the finished goods inventory account. At last, goods are sold at the cost transferred from the finished goods inventory account to cost of goods sold.

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Answer 3

Question

Chapter 4, Problem 1Q

To determine

Explain the cost flow from the raw materials to cost of goods sold in a manufacturing business.

Expert Solution & Answer

Explanation of Solution

Cost flow from the raw materials to cost of goods sold.

The cost of raw materials for production is transferred from the raw materials account to work-in process account. The manufacturing cost and the overhead cost is allocated to production by adding to the work-in process inventory account. Overhead cost is allocated according to the cost system. While the manufacturing process is completed, work is transferred to finished goods inventory, and costs moved from the work-in process inventory account to the finished goods inventory account. At last, goods are sold at the cost transferred from the finished goods inventory account to cost of goods sold.

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Answer 4

Question

Chapter 4, Problem 1Q

To determine

Explain the cost flow from the raw materials to cost of goods sold in a manufacturing business.

Expert Solution & Answer

Explanation of Solution

Cost flow from the raw materials to cost of goods sold.

The cost of raw materials for production is transferred from the raw materials account to work-in process account. The manufacturing cost and the overhead cost is allocated to production by adding to the work-in process inventory account. Overhead cost is allocated according to the cost system. While the manufacturing process is completed, work is transferred to finished goods inventory, and costs moved from the work-in process inventory account to the finished goods inventory account. At last, goods are sold at the cost transferred from the finished goods inventory account to cost of goods sold.

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Answer 5

Chapter 4, Problem 1Q

To determine

Explain the cost flow from the raw materials to cost of goods sold in a manufacturing business.

Expert Solution & Answer

Explanation of Solution

Cost flow from the raw materials to cost of goods sold.

The cost of raw materials for production is transferred from the raw materials account to work-in process account. The manufacturing cost and the overhead cost is allocated to production by adding to the work-in process inventory account. Overhead cost is allocated according to the cost system. While the manufacturing process is completed, work is transferred to finished goods inventory, and costs moved from the work-in process inventory account to the finished goods inventory account. At last, goods are sold at the cost transferred from the finished goods inventory account to cost of goods sold.

Answer 6

Chapter 4, Problem 1Q

To determine

Explain the cost flow from the raw materials to cost of goods sold in a manufacturing business.

Expert Solution & Answer

Explanation of Solution

Cost flow from the raw materials to cost of goods sold.

The cost of raw materials for production is transferred from the raw materials account to work-in process account. The manufacturing cost and the overhead cost is allocated to production by adding to the work-in process inventory account. Overhead cost is allocated according to the cost system. While the manufacturing process is completed, work is transferred to finished goods inventory, and costs moved from the work-in process inventory account to the finished goods inventory account. At last, goods are sold at the cost transferred from the finished goods inventory account to cost of goods sold.

Answer 7

Chapter 4, Problem 1Q

To determine

Explain the cost flow from the raw materials to cost of goods sold in a manufacturing business.

Answer 8

Expert Solution & Answer

Explanation of Solution

Cost flow from the raw materials to cost of goods sold.

The cost of raw materials for production is transferred from the raw materials account to work-in process account. The manufacturing cost and the overhead cost is allocated to production by adding to the work-in process inventory account. Overhead cost is allocated according to the cost system. While the manufacturing process is completed, work is transferred to finished goods inventory, and costs moved from the work-in process inventory account to the finished goods inventory account. At last, goods are sold at the cost transferred from the finished goods inventory account to cost of goods sold.