Conversion cost during the year 300000 labor and

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Conversion cost during the year (300,000 labor and 500,000 overhead) 800,000 Conversion cost in Ending Raw and In Process Account ( 7,000) Conversion cost in Ending Finished Goods account ( 4,000) Conversion cost included in cost of goods sold 796,000 Number 119 Answer A Raw materials in Beginning Raw and in Process Account (5,000 – 1,000) 4,000 Raw materials in received 400,000 Raw materials in Raw and in Process Ending Inventory (13,000) Raw materials backflushed to finished goods 391,000 Ending RIP, including conversion cost 20,000 Conversion cost ( 7,000) Raw materials in RIP ending inventory 13,000 Number 120 Answer C Raw Materials in Beginning Finished goods account 4,000 Raw Materials backflushed to finished goods 391,000 Raw Materials in Ending Finished Goods account ( 2,000) Raw materials backflushed to cost of goods sold 393,000 Beginning finished goods including conversion cost 10,000 Conversion cost (6,000) Raw materials in beginning finished goods 4,000 Ending finished goods including conversion cost 6,000 Conversion cost (4,000) Raw materials in ending finished goods 2,000 Number 121 Answer A
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Direct labor rate (1,000,000 / 100,000 bonus) 10 Multiply by direct labor hours used 7,000 Applied overhead 70,000 Number 122 Answer A Materials handling per kg. (200,000 / 100,000) 2.00 Painting per unit (300,000 / 50,000) 6.00 Assembly per hour (500,000 / 10,000) 50.00 Material handling (10,000 kilos x 2.00) 20,000 Painting (3,000 units x 6.00) 18,000 Assembly (300 hours x 50,000) 15,000 Applied overhead 53,000 Page 23 Number 123 Answer A Number 124 Answer D Number 125 Answer C Number 126 Answer A Beginning Work in Process Inventory in units 10,000 units Add: Units started during the period 30,000 units Less: Ending Work in Process Inventory in units (5,000 units) Units completed during the period 35,000 units Direct materials Conversion cost Units completed 35,000 35,000 35,000 Ending Inventory 5,000 (5,000 x 10%) 500 (5,000 x 25%) 1,250 EUP under average costing 35,500 36,250 Total costs for average costing P103,000+P252,000 P107,500+P146,250 Divide by EUP under average costing 35,500 units 36,250 units Cost per unit under average costing P10/unit (123) (A) P7/unit (124) (D) Direct materials Conversion cost Beginning inventory 10,000 (10,000 x 60%) 6,000 (10,000 x 30%) 3,000 Started and Completed 25,000 25,000 25,000 Ending Inventory 5,000 (5,000 x 10%) 500 (5,000 x 25%) 1,250 EUP under FIFO costing 31,500 29,250 Total costs for FIFO costing P252,000 P146,250 Divide by EUP under FIFO costing 31,500 units 29,250 units Cost per unit under FIFO costing P8/unit (125) (C) P5/unit (126) (A) Number 127 Answer C
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Beginning Work in process Inventory in units 10,000 units Units started during the period 40,000 units Units completed during the year (38,000 units) Ending Work in Process Inventory in units (5,000 units) Total spoilage in units 7,000 units Normal spoilage during the year (40,000 units x 10%) (4,000 units) Abnormal spoilage in units 3,000 units Number 128 Answer A Number 129 Answer B Direct materials Conversion cost Units completed 38,000 38,000 38,000 Ending Inventory 5,000 (5,000 x 65%) 3,250 (5,000 x 80%) 4,000 Normal loss 4,000 (4,000 x 20%) 800 (4,000 x 45%) 1,800 Abnormal loss 3,000 (3,000 x 20%) 600 (3,000 x 45%) 1,350 EUP under average costing 42,650 45,150 Page 24 Number 130 Answer C Number 131 Answer A Direct materials Conversion cost Beginning inventory 10,000 (10,000 x 40%) 4,000 (10,000 x 35%) 3,500 US and Completed 28,000 28,000 28,000 Ending Inventory 5,000 (5,000 x 65%) 3,250 (5,000 x 80%) 4,000 Normal loss 4,000 (4,000 x 20%) 800 (4,000 x 45%) 1,800 Abnormal loss 3,000 (3,000 x 20%) 600 (3,000 x 45%) 1,350 EUP under FIFO costing 36,650 39,150 Number 132 Answer B Accounts payable – December 1, 2020 ($1,000 x 45) 45,000
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