Question 1 Finished goods inventory, beginning Finished goods inventory, ending Depreciation, factory Administrative expenses Utilities, factory Maintenance, factory Supplies, factory Insurance, factory P 20,000 40,000 27,000 110,000 8,000 40,000 11,000 4,000 Purchases of raw materials 125,000 Raw materials inventory, beginning Raw materials inventory, ending 9,000 6,000 Indirect Labor 15,000 Direct Labor 70,000 Work in process inventory, beginning Work in process inventory, ending 17,000 30,000 Sales 500,000 Selling expenses 80,000

Question 1 Finished goods inventory, beginning Finished goods inventory, ending Depreciation, factory Administrative expenses Utilities, factory Maintenance, factory Supplies, factory Insurance, factory P 20,000 40,000 27,000 110,000 8,000 40,000 11,000 4,000 Purchases of raw materials 125,000 Raw materials inventory, beginning Raw materials inventory, ending 9,000 6,000 Indirect Labor 15,000 Direct Labor 70,000 Work in process inventory, beginning Work in process inventory, ending 17,000 30,000 Sales 500,000 Selling expenses 80,000

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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Cost of materials issuances under the FIF0 method Instructions Chart of Accounts Materials Inventory Journal Final Question Instructions X. An incomplete subsidiary ledger of materials inventory for May is as follows: RECEIVED ISSUED BALANCE Receiving Materials Report Unit Requisition Unit Number Quantity Price Number Quantity Amount Date Quantity Price Amount May 1 284 $30.00 $8,520 139 $32.90 May 4 91 373 May 10 44 117 38.80 May 21 97 100 May 27 Required: A. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO. Round your unit price answers to two decimal places and final answers to the nearest dollar. B. Determine the materials inventory balance at the end of May. Round your answer to the nearest dollar. C. Journalize the summary entry on May 31 to transfer materials to work in process. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar. D. Explain how the materials ledger might be used…
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How to compute 1. beginning finished goods inventory 2. total direct labor cost 3. total cost of goods sold
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Problem 2 Manufacturing Inventory Accounts. Assume the following information for Mandarin Manufacturing during 20X5: Raw materials inventory Work-in-process inventory. Finished goods inventory. Jan. 1, 20X5 Dec. 31, 20X5 P10,400 28,100 15,700 P14,600 31,300 12,500 In addition, direct labor and manufacturing overhead totaled P364,600, and cost of goods manufactured equaled P461,200 in 20X5. Required: Calculate the correct amounts for raw materials purchased, raw materials used, and cost of goods sold for 20X5.
M7-3 Identifying the Cost of Inventories for a Manufacturer LO7-1 Operating costs incurred by a manufacturing company become either (1) part of the cost of inventory to be expensed as cost of goods sold at the time the finished goods are sold or (2) expenses at the time they are incurred. Indicate whether each of the following costs belongs in category (1) or (2). a. Wages of factory workers b. Costs of raw materials purchased c. Sales salaries Page 375 d. Heat, light, and power for the factory building e. Heat, light, and power for the headquarters office building
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