The Just in Time operating system with backflush pricing is used by Johnson Textiles Company. The completed job in July used direct materials worth $500,000 and conversion costs at $70,000. 200,000 dollars were allocated to the inventory account for work-in-progress at the conclusion of the month. The closing balance of the finished products inventory was 230,000. Needed: Calculate the upcoming a. Amount added to the cost of the products sold. b. Final cost of goods sold
The Just in Time operating system with backflush pricing is used by Johnson Textiles Company. The completed job in July used direct materials worth $500,000 and conversion costs at $70,000. 200,000 dollars were allocated to the inventory account for work-in-progress at the conclusion of the month. The closing balance of the finished products inventory was 230,000. Needed: Calculate the upcoming a. Amount added to the cost of the products sold. b. Final cost of goods sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The Just in Time operating system with backflush pricing is used by Johnson Textiles Company. The completed job in July used direct materials worth $500,000 and conversion costs at $70,000.
200,000 dollars were allocated to the inventory account for work-in-progress at the conclusion of the month. The closing balance of the finished products inventory was 230,000.
Needed: Calculate the upcoming
a. Amount added to the cost of the products sold.
b. Final cost of goods sold balance
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
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