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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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9.Determinethe Raw Materials- Ending Balance using the following data obtained from Lancelot Company *
10.The amount of raw materials available for use is: *
![> Cost of goods manufactured, P187,500
> Inventory variations are as follows: raw materials ending inventory is one third based on raw materials
beginning; no initial inventory of work in process, but at end of period P12,500 was on hand; finished
goods inventory was four times as large at end of period as at the start.
> Net income after taxes amounted to P26,000, income tax rate is 35%.
> Purchase of raw materials amounted to net income before taxes
> Breakdown of costs incurred in manufacturing was as follows:
Raw materials consumed, 50%
Direct Labor, 30%
Overhead, 20%](https://content.bartleby.com/qna-images/question/8123390d-3a9e-4b3b-b1c7-17c2361cd1ae/e1a67c37-58d6-4fd0-91d2-21595329fdba/smfrvr4_thumbnail.png)
Transcribed Image Text:> Cost of goods manufactured, P187,500
> Inventory variations are as follows: raw materials ending inventory is one third based on raw materials
beginning; no initial inventory of work in process, but at end of period P12,500 was on hand; finished
goods inventory was four times as large at end of period as at the start.
> Net income after taxes amounted to P26,000, income tax rate is 35%.
> Purchase of raw materials amounted to net income before taxes
> Breakdown of costs incurred in manufacturing was as follows:
Raw materials consumed, 50%
Direct Labor, 30%
Overhead, 20%
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- Which of the following activity bases would be appropriate to use for materials handling? A. Number of machine hours B. Number of material moves C. Number of production orders D. Kilowatt-hours usedarrow_forwardThe equivalent units for the FIFO unit cost represent: a. work done during the current period. b. work done during the current period and the previous period. c. work done on units completed during the current period. d. work done during the previous period. e. the same thing as the equivalent units for the weighted average unit cost.arrow_forwardDengo Company makes a trail mix in two departments: Roasting and Blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. October data for the Roasting department follow. Beginning work in process inventory Units started and completed Units completed and transferred out Ending work in process inventory Beginning work in process inventory Costs added this period Direct materials. Conversion Total costs to account for Units 4,400 20, 600 25,000 3,800 $314, 760 1,374,948 Direct Materials Conversion Percent Percent Complete Complete 100% 30% 100% $ 124,790 1,689, 708 $ 1,814, 498 70%arrow_forward
- A direct material standard cost is: Group of answer choices The cost of direct materials that should be incurred to produce one unit of output or product. The amount of direct materials that should be used to produce one unit of output or product. The cost of all materials and supplies used to produce one unit of output or product. The price that should be spent to purchase each unit of direct material for production.arrow_forwardThe three major cost components of manufacturing a product are,arrow_forwardA direct material standard cost is? The cost of direct materials that should be incurred to produce one unit of output or product. The cost of all materials and supplies used to produce one unit of output or product. The price that should be spent to purchase each unit of direct material for production. The amount of direct materials that should be used to produce one unit of output or product.arrow_forward
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