Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd
Upload
1K views

EX3 Computations and Problems

This document contains 7 computational problems related to inventory accounting. Problem 1 has 4 subparts that ask the reader to calculate total manufacturing costs, prime costs, conversion costs, and cost of goods sold given information about beginning and ending inventory amounts, direct labor hours, overhead, and raw materials purchased. Problems 2-5 ask the reader to calculate raw materials used given beginning and ending inventory amounts and raw materials purchased. Problem 6 asks the reader to calculate beginning finished goods inventory given information about cost of goods sold, ending finished goods inventory, and cost of goods manufactured. Problem 7 provides additional inventory and cost information for a company and asks the reader to calculate prime costs, conversion costs, and cost of goods manufactured.

Uploaded by

CHACHACHA
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
1K views

EX3 Computations and Problems

This document contains 7 computational problems related to inventory accounting. Problem 1 has 4 subparts that ask the reader to calculate total manufacturing costs, prime costs, conversion costs, and cost of goods sold given information about beginning and ending inventory amounts, direct labor hours, overhead, and raw materials purchased. Problems 2-5 ask the reader to calculate raw materials used given beginning and ending inventory amounts and raw materials purchased. Problem 6 asks the reader to calculate beginning finished goods inventory given information about cost of goods sold, ending finished goods inventory, and cost of goods manufactured. Problem 7 provides additional inventory and cost information for a company and asks the reader to calculate prime costs, conversion costs, and cost of goods manufactured.

Uploaded by

CHACHACHA
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Computational Problems

JACKSON COMPANY
Jackson Company manufactures wood file cabinets. The following information is available for
June of the current year.

Beginning Ending
Raw Material Inventory P 6,000 P 7,500
Work in Process Inventory 17,300 11,700
Finished Goods Inventory 21,000 16,300

The direct labor rate is P9.60 per hour and overhead for the month was P9,600.

a. Compute total manufacturing costs for June, if there were 1,500 direct labor hours and
P21,000 of raw material was purchased.

b. What are prime costs and conversion costs, respectively if there were 1,500 direct labor
hours and P21,000 of raw material was purchased?

c. If there were 1,500 direct labor hours and P21,000 of raw material purchased, Cost of
Goods Manufactured is:

d. If there were 1,500 direct labor hours and P21,000 of raw material purchased, how much
is Cost of Goods Sold?

Problem 2
Davis Company manufactures desks. The beginning balance of Raw Material Inventory was
P4,500; raw material purchases of P29,600 were made during the month. At month end, P7,700
of raw material was on hand. Raw material used during the month was?

Beginning RM Inventory + Purchases - Ending RM Inventory = Raw Materials Used


P4,500 + 29,600 - 7,700 = X
X = P26,400

Problem 3
McCoy Company manufactures tables. The beginning balance of Raw Material Inventory was
P5,500; raw material purchases of P31,500 were made during the month. At month end, P8,200
of raw material was on hand. Raw material used during the month was?

Problem 4
Parker Company manufactures tables. If raw material used was P80,000 and Raw Material
Inventory at the beginning and end of the period, respectively, was P17,000 and P21,000, what
was amount of raw material was purchased?
Problem 5
Petrie Company manufactures chairs. If raw material used was P100,000 and Raw Material
Inventory at the beginning and end of the period, respectively, was P27,000 and P31,000, what
was amount of raw material was purchased?

Problem 6
Denson Company manufactures computer stands. What is the beginning balance of Finished
Goods Inventory if Cost of Goods Sold is P107,000; the ending balance of Finished Goods
Inventory is P20,000; and Cost of Goods Manufactured is P50,000 less than Cost of Goods Sold?

Problem 7
Wyman Enterprises

Inventories: March 1 March 31


Raw material P18,000 P15,000
Work in process 9,000 6,000
Finished goods 27,000 36,000

Additional information for March:


Raw material purchased P42,000
Direct labor payroll P30,000
Direct labor rate per hour P 7.50
Overhead rate per direct labor hour P 10.00

a. For March, prime cost incurred was

b. For March, conversion cost incurred was

c. For March, Cost of Goods Manufactured was

You might also like