WALANG FOREVER just started operations on January 1, 2017. During its first year, 80,000 units were...

 

Transcribed Image Text:

WALANG FOREVER just started operations on January 1, 2017. During its first year, 80,000 units were put into production and the following costs were incurred: Raw materials purchased Salaries of workers in production Salaries of factory supervisor and security personnel Utilities (water and electricity incurred) P 130,000 201,000 38,000 20,000 Only 80% of the raw materials purchased were put into production and 20% of those used were indirectly traceable to the product. As per physical count at December 31, 2017, there are only 5,255 units in the production are where they are 59% complete, and 60,000 are in the warehouse ready to be sold. The company usually expects that 10% of those started will be spoiled after the production period. Direct materlals are added 3/5 when unit is 2% complete, 25% when it is 98% complete and excess is added at the end. Direct labor and overhead is incurred evenly. REQUIRED: 1. If the inspection point is at 30% completion: a. Make a cost of production report for the period. b. Make the necessary entries to record all the transactions that happened for the period. 2. If the inspection point is at 95% completion: a. Make a cost of production report for the period. b. Make the necessary entries to record all the transactions that happened for the period. WALANG FOREVER just started operations on January 1, 2017. During its first year, 80,000 units were put into production and the following costs were incurred: Raw materials purchased Salaries of workers in production Salaries of factory supervisor and security personnel Utilities (water and electricity incurred) P 130,000 201,000 38,000 20,000 Only 80% of the raw materials purchased were put into production and 20% of those used were indirectly traceable to the product. As per physical count at December 31, 2017, there are only 5,255 units in the production are where they are 59% complete, and 60,000 are in the warehouse ready to be sold. The company usually expects that 10% of those started will be spoiled after the production period. Direct materlals are added 3/5 when unit is 2% complete, 25% when it is 98% complete and excess is added at the end. Direct labor and overhead is incurred evenly. REQUIRED: 1. If the inspection point is at 30% completion: a. Make a cost of production report for the period. b. Make the necessary entries to record all the transactions that happened for the period. 2. If the inspection point is at 95% completion: a. Make a cost of production report for the period. b. Make the necessary entries to record all the transactions that happened for the period.

Answer rating: 100% (QA)

1 If the inspection point is at 30 completion a Make a cost of production report for the period Inve... View the full answer