A sporting goods manufacturer buys wood as a direct material for badminton racket. The Forming Department processes the badminton rackets, and the rackets are then transferred to the Finishing Department where a sealant is applied. The Forming Department began manufacturing 10,000 "Surefires" during the month of May. There was no beginning inventory. Costs for the Forming department for the month of May were as follows: materials...............................……………………....…….…... ..P33,000 Direct Conversion Costs ........ 17,000 A total of 8,000 rackets were completed and transferred to the Finishing Department; the remaining 2,000 rackets were still in the forming process at the end of the month. All of the Forming Department's direct materials were placed in process, but on average, only 25% of the conversion cost was applied to the ending work-in-process inventory.

A sporting goods manufacturer buys wood as a direct material for badminton racket. The Forming Department processes the badminton rackets, and the rackets are then transferred to the Finishing Department where a sealant is applied. The Forming Department began manufacturing 10,000 "Surefires" during the month of May. There was no beginning inventory. Costs for the Forming department for the month of May were as follows: materials...............................……………………....…….…... ..P33,000 Direct Conversion Costs ........ 17,000 A total of 8,000 rackets were completed and transferred to the Finishing Department; the remaining 2,000 rackets were still in the forming process at the end of the month. All of the Forming Department's direct materials were placed in process, but on average, only 25% of the conversion cost was applied to the ending work-in-process inventory.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The categories of manufacturing costs comprising the total cost of work in process inventory are which of the following? Group of answer choices Selling expenses Direct costs General and administrative expenses Direct labor, direct materials, and manufacturing overhead
9. The entry to record a transfer of direct materials for use in production would include a debit to which account? O finished goods inventory O materials inventory O work-in-process inventory O cost of goods manufactured
system Which accounts can we find the cost of goods manufactured? (check all that apply) Direct Material Direct Labor Overhead Work in Process Finished Goods Cost of Goods Sold SUBMIT
Which of the following accounts would be debited to record the assignment of indirect materials? Group of answer choices Work-in-process inventory Manufacturing overhead Supplies expense Costs of goods sold
Explain the flow of manufacturing costs through the inventories and into cost of goods sold.
As production takes place, all material costs are added to the: Work-in-process Inventory account Manufacturing-Overhead inventory account Cost of goods sold account Finished goods inventory account
How is activity-based cost allocation useful to management for control and evaluation of the performance of a department? List three points only and briefly discuss them. Why is it necessary for the cost accountant to determine the percentage of completion in the ending work in process inventory at the end of the period? Briefly explain.
During production, how are the costs in process costing accumulated?A. to cost of goods soldB. to each individual productC. to manufacturing overheadD. to each individual department
What is the purpose of the Costs Accounted For section of the production cost report?
How would I start a Production Cost Report. Should I use the refined weighted average method to start or should I use this formula? Units completed / and transferred out + Equivalent units of ending work in process-Materials= Equivalent Units of Production Materials?
Use the cost per equivalent unit to assign costs to the work completed during the period.
As production occurs, materials, direct labor, and applied manufacturing overhead are recorded in a.materials. b.cost of goods sold. c.finished goods. d.work in process.