PurrChem’s raw materials records contained the following information for the month of August:August 1 Beginning inventory 1,250 kg. @ $250 per kg.8 Received 1,000 kg. @ $275 per kg.15 Issued 1,800 kg. into production.24 Received 1,000 kg. @ $285 per kg.27 Issued 1,200 kg. into production.Determine the cost of materials issued into production and thecost of the August 31 inventory under each of the following costingmethods (Round per unit amounts to three decimal places andtotal amounts to the nearest dollar.):1. FIFO2. LIFO3. Weighted average

Q: Okaboji Manufacturing Company reported the following materials data for the month ending November…

A: Direct materials:Direct materials are the raw materials which are directly related with the…

Q: Afridi Inc. has provided the following data for the month of August. The balance in the Finished…

A: Work in progress means the goods which is manufactured  partially in the production process and not…

Q: Afridi Inc. has provided the following data for the month of August. The balance in the Finished…

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

Q: TaskMaster Enterprises employs a standard cost system in which direct materlals Inventory is carrled…

A: Direct labor efficiency variance = ( Standard hours - Actual hours worked ) * Standard rate

Q: Marzoni's records show raw materials inventory had a beginning balance of $300 and an ending balance…

A: The term resources refer to both raw materials used in manufacturing and finished goods that are…

Q: Materials purchases for the month were $4,000. The Materials Inventory account had a beginning…

A: Materials inventory account is the ledger account that shows all the transactions of raw materials…

Q: Danica Corp. provided the following inventory balances and cost data for the month of June.   June…

A: The cost of goods sold includes the total cost of goods sold during the period.

Q: If GB Inc. has material cost of P10,000 in the July 1 RIP Inventory account, and P12,500 in the July…

A: Raw Materials Purchased = Closing Inventory Account + Raw Materials used - Opening Inventory…

Q: Boriales Company provided the following transactions relating to its raw materials inventory during…

A:

Q: The following information is available for the year ended December 31: Beginning raw materials…

A: Raw Material Consumed :— It means How much of Raw material Used in Manufacturing of Product During…

Q: ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC…

A: Raw materials: It is the basic input required to manufacture the finished products. The raw…

Q: ABC Company reports the following cost information for December:Cost of goods manufactured P135,800;…

A: Cost of goods manufactured means total costs incurred on manufacturing and production of goods.

Q: Beginning raw materials inventory was $32,000. During the month, $276,000 of raw material was…

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

Q: The following data refers to one month for Talmidge Company. Fill in the blanks. Direct materials…

A: Cost of goods sold represents the amount of expenditure that is incurred by the business in the…

Q: Tyare Corporation had the following inventory balances at the beginning and end May: May 1 $31,500…

A: Given,  Overhead applied = $43,200 Predetermined overhead rate = $12 per direct labor hour

Q: McCort Company employs a standard cost system in which direct materials inventory is carried at…

A: Direct labour rate variance means difference in standard cost and actual cost of labour due to…

Q: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The…

A: Formulas Material price variance = actual quantity x (standard price - actual price) Material…

Q: If the beginning balance for June of the materials inventory account of AAA Enterprise was P250,000,…

A: Consumption of Materail: It is the amount of raw material which is consumed in order to manufacture…

Q: Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials…

A: Cost of goods manufactured: It is a term used to show the total production costs of a company for a…

Q: The finished-goods inventory at the end of July was OMR 38,000. The beginning finished-goods…

A: As per the inventory equation,  Opening stock + Units produced= Cost of goods sold + closing…

Q: Hamrick Company employs a standard cost system in which direct materials inventory is carried at…

A: Formulas: Direct Materials Spending Variance = Standard material cost - Actual material cost Direct…

Q: Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of…

A: Predetermined overhead rate is used to calculate the estimated overhead. One can find whether the…

Q: Cerrone Inc. has provided the following data for the month of July. The balance in the Finished…

A: Raw materials: It is the basic input required to manufacture the finished products. The raw…

Q: The following information is about ABC Inc. during month of July: - Raw material purchases at cost…

A: The following information is about ABC Inc. during month of July: - Raw material purchases at cost…

Q: Inventory balances for the XYZ Enterprise for the month of June are as follows:…

A: Prime costs in the business meaans cost of direct material used and cost of direct labour in the…

Q: Sprint Shoes Inc. had a beginning inventory of 9,250 units on January 1, 20X1. The costs associated…

A: LIFO, last in last out is method for accounting  inventory. under LIFO method,cost of most recent…

Q: Danicaa Corp. provided the following inventory balances and cost data for the month of June.   June…

A: Cost of goods manufactured (Actual costing)=Cost of goods manufactured-Applied overhead+Actual…

Q: Wasik Company had the following inventory balances at the beginning and end of August 2013:…

A: Given the following information: Raw material inventory August 1: $58,000 (Opening)August 31:…

Q: The company uses a perpetual inventory system and has a highly labour-intensive production process,…

A: Predetermined manufacturing overhead rate = Total estimated factory overhead / Total estimated…

Q: ABC Company reports the following cost information for December: Cost of goods manufactured…

A: The question is related to Cost Sheet. Cost sheet is a Statement of cost A Cost Sheet or Cost…

Q: McCort Company employs a standard cost system in which direct materials inventory is carried at…

A: Labor rate variance analysis help in identifying the variances in the standard and actual labor rate…

Q: The company uses a perpetual inventory system and has a highly labour-intensive production process,…

A: Journal entries- Journal entries refers to the official book of a company which is used to record…

Q: The Assembly Department of GigaGo, Inc., manufacturer of computers, had 4,500 units of beginning…

A: Weighted-average method of inventory is to calculate the value of inventory as per weighted method…

Q: ​Hendrix & Franks Co. had the following beginning and ending inventory balances for the current…

A:

Q: Marzoni's records show raw materials inventory had a beginning balance of $100 and an ending balance…

A: Cost of material used is the cost of raw material that a company is required to manufacture or…

Q: The following information has been taken from the perpetual inventory system of Elite Manufacturing…

A: Manufacturing OH Cost :— Manufacturing OH Cost is the Cost which is Incurred to manufacturing the…

Q: Tyare Corporation had the following inventory balances at the beginning and end of May: May 1…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Selected nominal account balances of Seneca Products Corporation as of December 31, 2010 were as…

A: Cost of goods sold is the total cost incurred for manufacturing the product. It includes the amount…

Q: ABC Company reports the following cost information for December:Cost of goods manufactured P135,800;…

A: Cost of goods manufactured = Total manufacturing costs + Beginning Work-in-process inventory -…

Q: 1) Messinger Manufacturing Company had the following account balances for the quarter ending March…

A: Raw materials: It is the basic input required to manufacture the finished products. The raw…

Q: The following information has been taken from the perpetual inventory system of Elite Manufacturing…

A: Introduction: Finished goods are among the inventory items that are manufacturer-specific. Since…

Q: ABC Manufacturing has the following account balances at the beginning of the current year: Raw…

A: Total manufacturing cost is the sum of total direct material cost, total labor cost, and…

Q: Tyare Corporation had the following inventory balances at the beginning and end of May: May 1…

A: Direct labor hours refers to the number of hours that were directly associated with the production…

Q: Marzoni's records show raw materials inventory had a beginning balance of $200 and an ending balance…

A: Raw material means the material purchased and still not enter in to the production lines. Work in…

Q: The following data refers to one month for Talmidge Company. Fill in the blanks. Direct materials…

A: Cost accounting helps to calculate cost per unit and also profit and sale price of per unit. It is…

Q: Cerrone Inc. has provided the following data for the month of July. The balance in the Finished…

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

Q: Cost of goods sold, profit margin, and net income for a manufacturingcompany The following…

A: Cost accounting is widely used by the management to determine and control the cost of producing the…

Q: Kris GmbH has provided the following information regarding their inventories: Total Manufacturing…

A: A cost sheet is a method of allocating total costs into different categories. It helps to identify…

Q: Wiremold tracks the direct materials in inventory. At the end of their most recent month, the direct…

A: Raw material inventory      920000 x 7/20 =   322000 WIP  raw material.   920000x2/20. = 92000 Cost…

Q: The following information is about ABC Inc. during month of July: - Raw material purchases at cost…

A: Purchase inventory means the amount spent on the purchase of raw material less all discount and any…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.