A company reports the following information for the current year: Units Produced (25,000)< Units Sold (15,000), DM ($9 per unit), DL ($11 per unit), VOH (total $75,000) and FOH (total $137,500). Compute the cost of finished goods in inventory under absorption costing

A company reports the following information for the current year: Units Produced (25,000)< Units Sold (15,000), DM ($9 per unit), DL ($11 per unit), VOH (total $75,000) and FOH (total $137,500). Compute the cost of finished goods in inventory under absorption costing

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 5EB: Using the weighted-average method, compute the equivalent units of production if the beginning...

See similar textbooks

Related questions

Q: Assume that a company provided an income statement as follows: Sales $ 524,000 Cost of goods…

A: Cost of goods sold- The total direct cost incurred in preparing the goods is referred to as the cost…

Q: What are the total costs to account for if a company's beginning inventory had $231,436 in…

A: Total costs to account for=Costs in beginning inventory+Costs incurred during the period

Q: The department had a beginning inventory of 5,500 units of product, and it started 94,500 units…

A: The equivalent units are calculated on the basis of percentage of work completed during the period.

Q: The following data are obtained from Gianne Manufacturing Company: Cost of goods manufactured is…

A: Raw materials consumed means actual quantity and value of materials that is being used and consumed…

Q: What are the total costs to account for if a company's beginning inventory had $279,160 in…

A: Cost incurred in current year period = Direct material costs + Direct labor + Manufacturing overhead…

Q: Company had $10,000 of ending finished goods inventory, beginning finished goods inventor as…

A: Solution: Cost of goods manufactured is the total product cost of goods that has been completed…

Q: Georgio Corporation has the following data as of December 31, 2021. Product C Product D Units…

A: Inventory refers to all the goods and material sold by the market to earn a profit.

Q: Review the income statements on the Absorption Statement and Variable Statement panels, then…

A: Find items in table as shown below:

Q: he following information is available for Barnes Company for the fiscal year ended December 31:…

A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…

Q: Cavy Company completed 7,770 units during the year at a cost of $590,520. The beginning finished…

A: solution given Number of completed unit 7770 Cost incurred $590520 Opening inventory…

Q: At the end of the year WIP totaled $ 6,000. Calculate the total costs of goods manufactured and…

A: Cost of goods manufactured is the total costs incurred in manufacturing the product in current…

Q: The following information is available for Barnes Company for the fiscal year ended December 31:…

A: Formula: Ending inventory = Total produced units - Total sold units Deduction of sold units from…

Q: The department had beginning inventory of 5,500 units of product and it started 94,500 units during…

A: Formula: Equivalent cost per unit = Total transferred in cost / Total number of equivalent units

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Answer - Particulars Year 1 2 3 Difference in Operating Income 10800 32000 0…

Q: X Company had $90,000 of ending finished goods inventory, beginning finished goods inventory was…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Rocha & Noel Inc. had cost of goods sold of $123,200 for the current year ended December 31. The…

A: Given information: Cost of goods sold $123,200 Finished goods inventory on January 01 $30,800…

Q: The Lubao Company reported the following information for the year 2009: Gross profit -P560,000;…

A: The total sales is calculated as cost of goods sold and gross profit

Q: If Sales revenue is SR 26,000, beginning finished goods inventory is SR 8,000, ending finished goods…

A: Cost of goods sold = Cost of goods manufactured + Beginning finished goods inventory - Ending…

Q: Calculate the cost of goods sold when beginning finished goods inventory equals $70,000, ending…

A: We have the following information: Beginning Finished Goods Inventory: $70,000 Ending Finished…

Q: If Sales revenue is SR 26,000, beginning finished goods inventory is SR 8,000, ending finished goods…

A: Cost of goods sold: All the expenses that are incurred in making a product are called Cost of Goods…

Q: A company started a new product, and in the first month started 124,575 units. The ending work in…

A: Under Weighted average method, the beginning WIP is considered equally as transferred in units.

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Fixed cost per unit=Total fixed manufacturing costProduction (Year 2)=$72,000920=$78.260869565

Q: X Company had $80,000 of ending finished goods inventory, beginning finished goods inventory was…

A: Cost of goods manufactured = Cost of goods sold + Ending inventory - Beginning inventory

Q: 1)Coronado Industries reported the following year-end information: beginning work in process…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: The weighted-average cost method is used by Mendez, Inc. Sales are $90,000, the number of units…

A: The gross profit is the amount left after subtracting the cost of goods sold from the sales. And the…

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Absorption costing demonstrates that all the expenses related to manufacturing a product are…

Q: X Company had $90,000 of ending finished goods inventory, beginning finished goods inventory was…

A: Cost sheet is a method of allocating total cost into different categories such as direct material…

Q: Advanced Company reports the following information for the current year. All beginning inventory…

A: Unit product cost = $20 + $22 +$3 Unit product cost = $45 Variable Cost of goods sold = 21,600*$45…

Q: An excerpt from the last year’s final annual report ofKalamia manufacturing company reported the…

A: Inventory turnover is the ratio showing the number of times the company has sold the goods and how…

Q: The following is the year ended data for Baker Company: Sales Revenue $156,000 Cost of Goods…

A: Cost of goods available for sale: The cost of goods available for sale is the total cost incurred…

Q: Vera Ltd had beginning finished goods inventory of £35,000; its cost of goods manufactured was…

A: Cost of goods sold = Sales - Gross profit Cost of goods sold = 150,000 - 22,000 Cost of goods sold…

Q: Cavy Company completed 10,020 units during the year at a cost of $771,540. The beginning finished…

A: Cost per unit for beginning finished goods inventory = Total cost / Total units = $158,400 / 2,200…

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Fixed manufacturing cost per unit = Total Fixed manufacturing cost / Total production = $72,000 /…

Q: Cavy Company completed 10,510 units during the year at a cost of $746,210. The beginning finished…

Q: The following information is given for a company for the year ended December 31:…

A: SOLUTION- Absorption costing: Absorption costing is also called traditional costing. This method of…

Q: What are the total costs to account for if a company's beginning inventory had $231,430 in…

A: Total cost includes direct materials, direct labor, and other indirect productive expenses.

Q: Data concerning Dakota Enterprises' operations last year appear below: Units in the Beginning…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub-parts for…

Q: A company wishes to establish an EOQ for an item for which the annual demandis $800,000, the…

A: we wili only answer the first three subparts. For the remaining subparts kindly resubmit the…

Q: A company started a new product, and in the first month started 64,735 units. The ending work in…

A: Formula: Units transferred out = Started units - Ending work in process Deduction of ending work in…

Q: Belle Company reports the following information for the current year. All beginning inventory…

A: Introduction: Inventory expenses are calculated using absorption costing. Manufacturing overhead…

Q: Juliet Corporation has accumulated the following accounting data for the year: Finished goods…

A: The Cost of Goods manufactured is the total cost incurred during the year on the production of…

Q: The following information is available for Barnes Company for the fiscal year ended December 31:…

A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…

Q: If the beginning finished goods -9 inventory 90 000 ID, ending finished goods inventory 65 000 ID ,…

A: Cost of goods sold (COGS) refers to the cost including the costs which are directly related to the…

Q: The Lion Company's cost of goods manufactured was P120,000 when its sales were- P 360,000 and its…

A: Finished goods are the goods that have been fully manufactured and are ready for sale. The finished…

Q: The following is Cullumber Company’s income statement for the past year. Sales revenue $336,000…

A: Markup percentage = (Gross margin / Cost of goods sold) x 100

Q: A company started a new product, and in the first month started 90,000 units. The ending work in…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Question

A company reports the following information for
the current year: Units Produced (25,000)< Units
Sold (15,000), DM ($9 per unit), DL ($11 per unit),
VOH (total $75,000) and FOH (total $137,500).
Compute the cost of finished goods in inventory
under absorption costing
a. $427,500
O b. $285,000
O c. $230,000
O d. $712,500

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

Cost of goods sold Pine Creek Company completed 200,000 units during the year at a cost of 3,000,000. The beginning finished goods inventory was 25,000 units at 310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Using the weighted-average method, compute the equivalent units of production if the beginning inventory consisted of 20,000 units; 55,000 units were started in production; and 57,000 units were completed and transferred to finished goods inventory. For this process, materials are added at the beginning of the process, and the units are 35% complete with respect to conversion.
Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for 400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips accounting records provide the following information: Required: 1. Prepare a statement of cost of goods manufactured. 2. Compute the average cost of producing one unit of product in the year. 3. Prepare an income statement for external users.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Using the weighted-average method, compute the equivalent units of production if the beginning inventory consisted of 20,000 units, 55,000 units were started in production, and 57,000 units were completed and transferred to finished goods inventory. For this process, materials are 70% complete and the Units are 30% complete with respect to conversion.
Using the weighted-average method, compute the equivalent units of production for a new company that started 85,000 units into production and transferred 67,000 to the second department. Assume that beginning inventory was 0. Conversion is considered to occur evenly throughout the process, while materials are added at the beginning of the process. The ending inventory for Equivalent Units: Conversion is 9,000 units.
Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Akira Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $25 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
During the year, a company purchased raw materials of $77,321 and incurred direct labor costs of $125,900. Overhead Is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
Bleistine Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $50 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
If the beginning finished goods inventory 250 000 ID. prime cost 250 000 ID, ending finished goods inventory 160 000 ID, manufacturing overhead expenses 180 000 ID cost of goods manufactured 1224 000 ID, the cost of goods *-: sold are