If the product was sold P80 per unit, how much was its unit cost?Inventory value that should be shown in the Statement of Financial Position of 08/31/21? Direct materials purchased230,000Work-in-process inventory, 08/01/x260,000Direct materials inventory, 08/01/x240,000Finished goods inventory, 08/01/x2340,000Conversion costs650,000Total manufacturing costs during August 830,000Cost of goods manufactured4x the cost of direct materials usedGross margin as a percentage of revenue35%Revenues1,200,000

Direct material used=Total Manufacturing cost-Conversion cost=830,000-650,000=180,000

Direct materials purchased 230,000 Work-in-process inventory, 08/01/x2 Direct materials inventory, 08/01/x2 Finished goods inventory, 08/01/x2 60,000 40,000 340,000 Conversion costs 650,000 Total manufacturing costs during August 830,000 Cost of goods manufactured 4x the cost of direct materials used Gross margin as a percentage of revenue 35% Revenues 1,200,000

Direct materials purchased 230,000 Work-in-process inventory, 08/01/x2 Direct materials inventory, 08/01/x2 Finished goods inventory, 08/01/x2 60,000 40,000 340,000 Conversion costs 650,000 Total manufacturing costs during August 830,000 Cost of goods manufactured 4x the cost of direct materials used Gross margin as a percentage of revenue 35% Revenues 1,200,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...

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