Exam 8: Accounting for Inventory

In June, XYZ Engineering received an order to produce a batch of 100 Maxilons. Each batch requires 50 purchased components and 75 labour hours. XYZ was unable to complete the order until July. The following transactions took place during the month of June: Units Unit cost Purchase of components 75 £30 Issue of components to job 30 Labour to produce finished goods Hours Cost/hour 40 £45 The following transactions took place during the month of July: Issue of components to job Units Unit cost 20 Hours Cost/hour Labour to produce finishedgoods 35 £45 Completed 100 Maxilons -The cost of sales (excluding any overhead) for the completed job is:

In June, XYZ Engineering received an order to produce a batch of 100 Maxilons. Each batch requires 50 purchased components and 75 labour hours. XYZ was unable to complete the order until July. The following transactions took place during the month of June: Units Unit cost Purchase of components 75 £30 Issue of components to job 30 Labour to produce finished goods Hours Cost/hour 40 £45 The following transactions took place during the month of July: Issue of components to job Units Unit cost 20 Hours Cost/hour Labour to produce finishedgoods 35 £45 Completed 100 Maxilons -The cost of materials and labour charged to the job during the month of July is:

In June, XYZ Engineering received an order to produce a batch of 100 Maxilons. Each batch requires 50 purchased components and 75 labour hours. XYZ was unable to complete the order until July. The following transactions took place during the month of June: Units Unit cost Purchase of components 75 £30 Issue of components to job 30 Labour to produce finished goods Hours Cost/hour 40 £45 The following transactions took place during the month of July: Issue of components to job Units Unit cost 20 Hours Cost/hour Labour to produce finishedgoods 35 £45 Completed 100 Maxilons -The value of work in progress at the end of June is:

A business purchases stock on three separate occasions Units Total bought Cost 3500 8050 3000 7110 4000 9600 10500 24760 -Using the weighted average method, the cost of sales is:

Maxwell Consulting has been engaged to undertake a software development project on behalf of its client. The agreed and fixed contract price is €2 million. Maxwell expects its total costs to complete the project to be €1.25 million. At the end of the 2015 financial year, Maxwell has incurred costs of €750,000 and expects to incur a further €600,000 to complete the project in the following financial year. The amount of profit that Maxwell should include in its financial statements for 2015 is:

Use the following information from the financial statements of ABC Co for the 2015 financial year : £ Sales 600,000 Materials used in production 120,000 Labour used in production 70,000 Manufacturing overheads 50,000 Less selling \& admin expenses 200,000 Work in progress at beginning of period 45,000 Work in progress at end of period 60,000 Finished goods at beginning of period 125,000 Finished goods at end of period 100,000 -The gross profit for ABC Co for the 2015 financial year is:

A business purchases stock on three separate occasions Units Total bought Cost 3500 8050 3000 7110 4000 9600 10500 24760 -Using the first in-first out (FIFO) method, the value of inventory is:

The inventory value and cost of sales for unique products manufactured to satisfy a customer's order would be calculated using:

Given the following information: Sales €500,000; Purchases €325,000; Stock at beginning of period €50,000; Stock at end of period €60,000; the gross profit is:

A business purchases stock on three separate occasions Units Total bought Cost 3500 8050 3000 7110 4000 9600 10500 24760 -Using the first in-first out (FIFO) method, the cost of sales is:

Bixco uses a process costing system and the weighted average method for its production of synthetic oils.During January materials totalling $300,000 were purchased, of which $150,000 was issued to production cost. Conversion costs of $100,000 were incurred. Production volume was 200,000 kg and of this 150,000 kg was sold. The cost of sales for January was:

In a manufacturing business, the completion of production results in the following flow of costs for inventory:

Use the following information from the financial statements of ABC Co for the 2015 financial year : £ Sales 600,000 Materials used in production 120,000 Labour used in production 70,000 Manufacturing overheads 50,000 Less selling \& admin expenses 200,000 Work in progress at beginning of period 45,000 Work in progress at end of period 60,000 Finished goods at beginning of period 125,000 Finished goods at end of period 100,000 -The cost of sales for ABC Co for the 2015 financial year is:

Inventory is valued in a Balance Sheet (Statement of Financial Position) at:

Use the following information from the financial statements of ABC Co for the 2015 financial year : £ Sales 600,000 Materials used in production 120,000 Labour used in production 70,000 Manufacturing overheads 50,000 Less selling \& admin expenses 200,000 Work in progress at beginning of period 45,000 Work in progress at end of period 60,000 Finished goods at beginning of period 125,000 Finished goods at end of period 100,000 -The cost of goods manufactured for ABC Co for the 2015 financial year is:

Peezo Inc uses a process costing system and the weighted average method for partially completed units. Production costs during January comprised materials issued at the beginning of the production process costing $120,000 and conversion costs of $80,000. At the end of the month 10,000 units had been completed and placed into finished goods inventory while a further 5,000 units remained in work-in-progress, 80% complete as to conversion costs. The value of work-in-progress at the end of January is:

A business purchases stock on three separate occasions Units Total bought Cost 3500 8050 3000 7110 4000 9600 10500 24760 -Using the weighted average method, the value of inventory is:

Use the following information from the financial statements of ABC Co for the 2015 financial year : £ Sales 600,000 Materials used in production 120,000 Labour used in production 70,000 Manufacturing overheads 50,000 Less selling \& admin expenses 200,000 Work in progress at beginning of period 45,000 Work in progress at end of period 60,000 Finished goods at beginning of period 125,000 Finished goods at end of period 100,000 -The value of inventory in ABC Co's Balance Sheet at the end of 2015 is: