Chapter 2-Long Problems Weather Manufactures mailboxes. The following data represent transactions and balances for December 2020,...

Transcribed Image Text:

Chapter 2-Long Problems Weather Manufactures mailboxes. The following data represent transactions and balances for December 2020, the company's first month of operations. Purchased direct material on account P 248,000 Issued direct material to production Accrued direct labor payroll Paid factory rent Accrued factory utilities Recorded factory equipment depreciation 186,000 134,000 Paid supervisor salary 6,400 Ending Work In Process Inventory (6,000 units) 35,000 Ending Finish Goods Inventory (3,000 units) 7 3,600 16,200 15,800 Sales on account (P24 per unit) 648,000 • How many units were sold in December? How many units were completed in December? • What was the total of goods manufactured in December? • What was the per-unit cost of goods manufactured in December? • Prepare the journal entries to record the flow of costs for December. Weather uses perpetual inventory system and a single Manufacturing Overhead Control account. Assume that actual overhead is included in WIP Inventory. Direct labor payroll accrued Indirect labor payroll paid Flexin began business in July 2021. The firm makes an exercise machine for home and gym use. Following are the data taken from the firm's accounting records that pertain to its first month of operations. Direct materials purchased on account Direct materials issued to production Factory insurance expired Factory utilities paid Factory depreciation recorded P 900,000 377,000 126,800 40,600 6,000 17,800 230,300 51,000 97,500 Ending Work In Process Inventory Ending Finished Goods Inventory (30 units) Sales on account (P5,200 per unit) 1,040,000 • How many units did the company sell in July 2021? • Prepare a schedule of cost of goods manufactured for July 2021. • How many units were completed in July? What was the per-unit cost of goods manufactured for the month? • What was the cost of goods sold in the first month of operations? • What was the gross margin for July 20217 Chapter 2-Long Problems Weather Manufactures mailboxes. The following data represent transactions and balances for December 2020, the company's first month of operations. Purchased direct material on account P 248,000 Issued direct material to production Accrued direct labor payroll Paid factory rent Accrued factory utilities Recorded factory equipment depreciation 186,000 134,000 Paid supervisor salary 6,400 Ending Work In Process Inventory (6,000 units) 35,000 Ending Finish Goods Inventory (3,000 units) 7 3,600 16,200 15,800 Sales on account (P24 per unit) 648,000 • How many units were sold in December? How many units were completed in December? • What was the total of goods manufactured in December? • What was the per-unit cost of goods manufactured in December? • Prepare the journal entries to record the flow of costs for December. Weather uses perpetual inventory system and a single Manufacturing Overhead Control account. Assume that actual overhead is included in WIP Inventory. Direct labor payroll accrued Indirect labor payroll paid Flexin began business in July 2021. The firm makes an exercise machine for home and gym use. Following are the data taken from the firm's accounting records that pertain to its first month of operations. Direct materials purchased on account Direct materials issued to production Factory insurance expired Factory utilities paid Factory depreciation recorded P 900,000 377,000 126,800 40,600 6,000 17,800 230,300 51,000 97,500 Ending Work In Process Inventory Ending Finished Goods Inventory (30 units) Sales on account (P5,200 per unit) 1,040,000 • How many units did the company sell in July 2021? • Prepare a schedule of cost of goods manufactured for July 2021. • How many units were completed in July? What was the per-unit cost of goods manufactured for the month? • What was the cost of goods sold in the first month of operations? • What was the gross margin for July 20217

Answer rating: 100% (QA)

To answer these questions we need to use the following formulas Total direct material used Beginning direct material inventory Purchases of direct mat... View the full answer