Lagoon Company accumulated the following data for the current year. Raw materials - beginning inventory, 90,000 units
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Problem 4 - Based on the facts of Lagoon Company (problem above), how much is the total manufacturing cost?
Problem 5 - Apitong Company manufactures bath towels. The production comprises 60% of "Class A" which sells for P500 per dozen and 40% of "Class B" which sells for P250 per dozen. During the current year, 60,000 dozens were produced at an average cost of P360 a dozen. The entity revealed the following inventory at the end of current year: 2,200 dozens "class A" @ P360 is P792,000 and 3,000 dozens "Class B" at P360 is P1,080,000. Using the relative sales value method which management considers as a more equitable basis of cost distribution, what is the measurement of the inventory?
Problem 6 - Aloha Company determined the following information for an inventory at year-end: Historical cost - P2,000,000; Current replacement cost - P1,400,000; NRV is P1,800,000; Net realizable value less a normal profit margin is P1,700,000 and Fair value is P1,900,000. What should be reported as inventory at year end?
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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