Voyager Inc. produces customized vans and had balances in finished goods, work in process, and materials inventories on November 1. During November, the company purchased additional materials, requisitioned materials for vans, recorded payroll and labor costs, paid payroll, applied overhead costs, completed two vans, and sold three completed vans.
Voyager Inc. produces customized vans and had balances in finished goods, work in process, and materials inventories on November 1. During November, the company purchased additional materials, requisitioned materials for vans, recorded payroll and labor costs, paid payroll, applied overhead costs, completed two vans, and sold three completed vans.
Voyager Inc. produces customized vans and had balances in finished goods, work in process, and materials inventories on November 1. During November, the company purchased additional materials, requisitioned materials for vans, recorded payroll and labor costs, paid payroll, applied overhead costs, completed two vans, and sold three completed vans.
Voyager Inc. produces customized vans and had balances in finished goods, work in process, and materials inventories on November 1. During November, the company purchased additional materials, requisitioned materials for vans, recorded payroll and labor costs, paid payroll, applied overhead costs, completed two vans, and sold three completed vans.
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Voyager Inc. produces customized vans in a job order shop.
On November 1, the following balances
appear in the inventory records:
Finished goods P179,000
Work in process 308,000 Materials 83,000
The amount in Finished Goods represents P101,000 recorded for Van 175 and P78,000 recorded for Van 177. The work in process account represents the three vans in process, as follows:
Van 179 Van 180 Van 181
Factory overhead P75,000 P50,000 P25,000 Direct labor 60,000 40,000 20,000 Direct materials 26,000 7,000 5,000
The following transactions occurred during November:
(a) Purchased materials on account, P80,000. (b) Requisitioned P60,000 of materials from inventory: P15,000 applied to Van 180, P25,000 to Van 181, and P16,000 to Van 182, a new order; the balance was for indirect materials. (c) Recorded the liability for the payroll and the labor cost distribution in a single entry: total payroll, P208,750. Of the payroll cost, 10% applied to Van 179, 20% to Van 180, 35% to Van 181, 30% to Van 182, and the remainder to indirect labor. (d) Paid the payroll. (e) Applied factory overhead at the rate of 150% of direct labor cost. (f) Completed Vans 179 and 180. (g) Sold Vans 175, 177, and 180 at 50% over manufacturing costs.