P7-4 The following transaction occurred in production department of NGV Company. 1. Direct material purchased on credit for P25,000 2. All material used in production department 3. Direct Labor cost incurred was P9,000 4. Overhead applled to production department was P22,000 5. Units completed were of worth P55,000 6. Unit sold were costing P45,500 195 CHAPTER 7 Jus-In-Time and Backfhusb Accounting Seanned with Camseanner NGV uses backflush costing method. Required: a. Calculate the finished goods inventory Compute the work in process inventory. b. C. transactions. nted work with conversion

P7-4 The following transaction occurred in production department of NGV Company. 1. Direct material purchased on credit for P25,000 2. All material used in production department 3. Direct Labor cost incurred was P9,000 4. Overhead applled to production department was P22,000 5. Units completed were of worth P55,000 6. Unit sold were costing P45,500 195 CHAPTER 7 Jus-In-Time and Backfhusb Accounting Seanned with Camseanner NGV uses backflush costing method. Required: a. Calculate the finished goods inventory Compute the work in process inventory. b. C. transactions. nted work with conversion

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 8EB: A production department within a company received materials of $7,000 and conversion costs of $5,000...

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5. X Corporation transferred P72,000 of raw materials to its production department in February and incurred P37,000 of conversion cost (P22,000 of direct labor and P15,000 of overhead). At the beginning of the period P14,000 of inventory (material and conversion cost) was in process. At the end of the period P18,000 of inventory was in process. What was the cost of goods manufactured? a. P105,000 c. P109,000 b. P123,000 d. P141,000 (adapted)
X Ltd. manufactures product A which yields two by-products B and C. In a period the amount spent up to the point of separation was OMR 20,600. Subsequent expenses were: Materials (in OMR) A: 300 B: 200 C: 150 Direct Wages (in OMR) A: 400 B: 300 C: 200 Overhead (in OMR) A: 300 B: 270 C: 280 Gross sales value of product A, B and C was RO 15,000, RO 10,000 and RO 5,000 respectively. It was estimated that the net profit as a percentage of sales in B and C would be 25% and 20% respectively. Ascertain the profit earned on A.
P7-4 The following transaction occurred in production department of NGV Company. Direct material purchased on credit for P25,000 All material used in production department Direct Labor cost incurred was P9,000 Overhead applied to production department was P22,000 1. 2. 3. 4. 5. Units completed were of worth P55,000 Unit sold were costing P45,500 6. NGV uses backflush costing method. Required: a. Calculate the finished goods inventory. b. Compute the work in process inventory. C. transactions.
3. The company incurred the following cost during March: Purchased materials on account $23,000Determined that $600 of those materials were indirectIncurred $5,250 of indirect wagesSales personnel earned $9,800 in commissionFactory Utilities cost of $550 were paid Recorded Factory Depreciation of $8,500 A. Record the purchase of materials.B. Record only the actual MOH.
. Problems Problem 1 ( Flow of an accounting for the manufacturing company ) The following events took place at the Barton Manufacturing Corporation for a . the current year : 1. Purchased P80,000 in direct materials . 2. Incurred labor costs as follows : Direct labor , P42,000 . b . Supervisory labor , P11,500 ( part of manufacturing overhead ) . 3. Purchased manufacturing equipment for P67,200 . 4. Other manufacturing overhead was P80,500 , excluding supervisory labor . 5. Transferred 70 percent of the materials purchased to work in process . 6. Completed work on 60 percent of the goods in process . Costs are equally across all work in process . 7. Sold 90 percent of the completed goods . assigned There were no beginning balances in the inventory accounts . All costs incurred were debited to the appropriate account and credited to accounts payable . Required : 1. Prepare journal entries to reflect these events . 2. Prepare T - accounts to show these events . 3. Prepare a cost of…
Q.3. Raw material (1-1-03) Rs 12,500 Work-in-Process (1-1-03) 6,300 Finished Goods (1-1-03) 12,500 Sales 678,600 Sales return 15,000 Purchases of raw material 245,000 Administrative expense 70,000 Marketing expense 55,000 Indirect material 8,000 Indirect labor 4,500 Raw material (31-12-03) Rs 32,000 Work-in-Process (31-12-03) 16,500 Finished Goods (31-12-03) 25,000 Direct labor 125,000 Other factory overhead 17,600 Repair and maintenance 10,000 Insurance-factory 12,000 Depreciation-factory 22,000 Required: Statement of cost of goods…
X Ltd. manufactures product A which yields two by-products B and C. In a period the amount spent up to the point of separation was RO 20,600. Subsequent expenses were: A Materials (in RO) 300 200 150 Direct Wages (in RO) 400 300 200 Overhead (in RO) 300 270 280 Gross sales value of product A, B and C was RO 15,000, RO 10,000 and RO 5,000 respectively. It was estimated that the net profit as a percentage of sales in B and C would be 25% and 20% respectively. Ascertain the profit earned on A. Product Sales Profit Estimated Post Separation Proportion of Cost Cost Joint Cost B 田 Sales Of A Joint Cost of A Post Separation Cost Profit
6. The following cost relate to XYZ Corp for the year:Sales commission expenses P 185,000Direct materials 215,000Conversion cost 435,000Factory overhead 190,000 (40% of which is fixed)What is the TOTAL MANUFACTURING (PRODUCT) COSTS?
Norman Company produced 1,000 units of a product which was sold at a price of P95.00 each. Total selling and administrative incurred P30,000 P 25.00 16.00 19.00 Direct materials Direct labor Factory overhead 002 18. Conversion cost per unit is a. P 41.00 b. P 44.00 c. P35.00 d. P45.00 19. Cost of goods sold per unit is a. P 41.00 b. P 44.00 c. P35.00 d. P60.00 20. Gross profit per unit is a. P54.00 b. P51.00 c. P60.00 d. P35.00
P7-2 The production department of Ted Milk shows following transaction in month of September. Company adopted JIT system few months back. 1. Material purchased on credit for P20,000 2. All material was used during production 3. Direct labors cost incurred for P6,000 Overhead charged to production was P20,000 Units completed costing P45,500 6. Units sold for P45,000 4. 5. Required: Computer for the following: a. Finished goods inventory b. Work in process inventory
7. The following cost relate to XYZ Corp for the year: Sales commission expenses P 185,000 Direct materials 215,000 Conversion cost 435,000 Factory overhead 190,000 (40% of which is fixed) What is the TOTAL LABOR COSTS? 8. The following cost relate to XYZ Corp for the year: Sales commission expenses P 185,000 Direct materials 215,000 Conversion cost 435,000 Factory overhead 190,000 (40% of which is fixed) What is the TOTAL PERIOD COSTS?
b. Incurred manufacturing wages of $11,000, 75% of which was direct labor and 25% of which was indirect labor. Date Accounts Debit Credit b. c. Purchased raw materials on account, $23,000. Date Accounts Debit Credit c. d. Used in production: direct materials, $7,500; indirect materials, $2,000. Date Accounts Debit Credit d. e. Recorded manufacturing overhead: depreciation on plant, $18,000; plant insurance (previously paid), $1,900; plant property tax, $4,200 (credit Property Tax Payable). Date Accounts Debit Credit e.…