Concept explainers
Concept introduction:
Work in Progress inventory means the stock which is still in the process of production.
Finished Goods inventory means those goods on which the work of production is completed and they are available for sale.
Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.
Requirement-1:
To calculate:
Amount of the labor cost transfer to WIP, Manufacturing
Concept introduction:
Work in Progress inventory means the stock which is still in the process of production the work on these goods still not completed.
Finished Goods inventory means those goods on which the work of production is completed and they are available for sale.
Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.
Requirement-2:
Why some labor cost related to WIP, some as manufacturing overhead, and some as period cost?
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Managerial Accounting
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- Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01arrow_forwardPrepare the journal entry to record the factory wages of $28,000 incurred for a single production department assuming payment will be made in the next pay period.arrow_forwardA summary of the time tickets is as follows: Journalize the entry to record the factory labor costs.arrow_forward
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