The following date were provided by Madilim Co.: WIP, end Materials, chemicals (100% complete) Materials, cans (? Complete) Labor (20% incomplete) Overhead (20% incomplete) WIP, beg Materials, WIP, beg Materials, chemicals (? complete) Materials, cans (? Complete) Labor (75% incomplete) Overhead (75% incomplete) Started during the month 4,000 gallons P456,000 chemicals Labor - P100 per P62,500 hour Overhead P18,750 Cost added P2,284,000 21,000 gallons Transferred to shipping department during the Materials, cans P70,000 20,000 gallons month Labor (P100 per hour) Overhead P350,000 P105,000 Production begins with the blending of various chemicals, which are added at the beginning of the process and ends with canning of the product. Canning occurs when the mixtures reach the 90% stage of completion. The gallon cans are then transferred to the shipping department for crafting and shipment. Direct labor and overhead are added continuously throughout the process. Overhead is allocated on the basis of direct labor hours at the rate of P30 per hour. Using FIFO compute for the cost of the WIP, end.
The following date were provided by Madilim Co.: WIP, end Materials, chemicals (100% complete) Materials, cans (? Complete) Labor (20% incomplete) Overhead (20% incomplete) WIP, beg Materials, WIP, beg Materials, chemicals (? complete) Materials, cans (? Complete) Labor (75% incomplete) Overhead (75% incomplete) Started during the month 4,000 gallons P456,000 chemicals Labor - P100 per P62,500 hour Overhead P18,750 Cost added P2,284,000 21,000 gallons Transferred to shipping department during the Materials, cans P70,000 20,000 gallons month Labor (P100 per hour) Overhead P350,000 P105,000 Production begins with the blending of various chemicals, which are added at the beginning of the process and ends with canning of the product. Canning occurs when the mixtures reach the 90% stage of completion. The gallon cans are then transferred to the shipping department for crafting and shipment. Direct labor and overhead are added continuously throughout the process. Overhead is allocated on the basis of direct labor hours at the rate of P30 per hour. Using FIFO compute for the cost of the WIP, end.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Using FIFO compute for the cost of the WIP, end.
Transcribed Image Text:The following date were provided by Madilim Co.:
WIP, beg
Materials,
WIP, beg
Materials, chemicals (?
complete)
Materials, cans (?
Complete)
Labor (75% incomplete)
Overhead (75%
incomplete)
Started during the
4,000 gallons
WIP, end
Materials, chemicals
(100% complete)
Materials, cans (?
Complete)
Labor (20% incomplete)
Overhead (20%
incomplete)
P456,000
chemicals
Labor - P100 per
hour
Overhead
P62,500
P18,750
Cost added
P2,284,000
21,000
month
gallons
20,000
Transferred to shipping
department during the
Materials, cans
P70,000
gallons
month
Labor (P100 per
hour)
Overhead
P350,000
P105,000
Production begins with the blending of various chemicals, which are added at the beginning of the
process and ends with canning of the product. Canning occurs when the mixtures reach the 90% stage of
completion. The gallon cans are then transferred to the shipping department for crafting and shipment.
Direct labor and overhead are added continuously throughout the process. Overhead is allocated on the
basis of direct labor hours at the rate of P30 per hour. Using FIFO compute for the cost of the WIP, end.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education