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Ending Balances in Inventory Accounts

The document outlines solutions to accounting problems involving calculations of merchandise inventory, direct materials, work-in-process, finished goods inventory, and cost of goods sold. It provides beginning balances, purchases, available amounts, ending balances, and costs for each category across multiple periods to calculate final values like direct materials used, current manufacturing costs, and cost of goods sold.

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Christine Marie T. Ramirez
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10 views2 pages

Ending Balances in Inventory Accounts

The document outlines solutions to accounting problems involving calculations of merchandise inventory, direct materials, work-in-process, finished goods inventory, and cost of goods sold. It provides beginning balances, purchases, available amounts, ending balances, and costs for each category across multiple periods to calculate final values like direct materials used, current manufacturing costs, and cost of goods sold.

Uploaded by

Christine Marie T. Ramirez
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Solutions:

1. Merchandise Inventory

Beginning Balance ₱ 41, 000


Add: Purchases 210,000
Merchandise Available for Sale 251,000
Less: Cost of Goods Sold (223,000)
Ending Balance ₱ 28,000

2. Direct Materials

Beginning Balance ₱ 7, 000


Add: Purchases 48,000
Total Available for Use 55,000
Less: Ending Balance (14,000)
Direct Materials Used ₱ 41,000

3. Work-in-process

Cost of Goods Manufactured ₱ 21, 000


Add: Inventory Ending Balance 22,000
Cost of Goods Put into Process 43,000
Less: Beginning Balance (8,000)
Current Manufacturing Costs ₱ 35,000

4. Finished Goods Inventory

Cost of Goods Sold ₱ 61, 000


Add: Ending Balance 20,000
Total Goods Available for Sale 81,000
Less: Cost of Goods Manufactured (62,000)
Beginning Balance ₱ 19,000

Problem 1

Cost of Goods Manufactured ₱ 340, 000


Add: Finished Goods, Beginning 45,000
Total Goods Available for Sale 385,000
Less: Finished Goods, Ending (52,000)
Cost Of Goods Sold ₱ 333,000

Cost of Goods Sold ₱ 333, 000


Add: Gross Margin (96,000)
Sales ₱ 429,000

Problem 2

Direct Materials, Beginning ₱ 300, 000


Add: Direct Materials, End 50,000
Direct Materials Purchases ₱350,000

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