Question
In: Accounting
P Company pays for purchases of materials in full in the month following the purchase
P Company pays for purchases of materials in full in the month following the purchase. During the previous month, IP had purchases of $25,000. During the current month, IP had purchases of $30,000.
The amount that IP will pay during the current month for purchases is ______
Solutions
Expert Solution
IP company pays for purchases of materials in full in the month following the purchase. It means payment for material purchase is to be made in the next month of purchase. For example, material purchased in the month of January will be paid next month i.e. February.
During the previous month, IP had purchases of $25,000. Thus, it will be paid in the current month
The amount that IP will pay during the current month for purchases is $25,000.
Dr. OWL answered 3 years agoRelated Solutions
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Alpha Corporation has the following information for the month of
August:
Purchases
$ 92,000
Materials inventory, August 1
6,000
Materials inventory, August 31
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Direct labor
25,000
Factory overhead
37,000
Work in process, August 1
32,000
Work in process, August 31
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Finished goods inventory, August 1
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Finished goods inventory, August 31
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Sales and administrative expenses
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Zoe Corporation has the following information for the month of March: Purchases $ 92,000 Materials inventory,...
Zoe Corporation has the following information for the month of
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Purchases
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Materials inventory, March 1
6,000
Materials inventory, March 31
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Direct labor
25,000
Factory overhead
37,000
Work in process, March 1
21,000
Work in process, March 31
23,500
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Finished goods inventory, March 31
30,000
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Prepare (a) a schedule of cost of goods manufactured, (b) an
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Zoe Corporation has the following information for the month of March. Purchases $ 92,000 Materials inventory,...
Zoe Corporation has the following information for the month of
March.
Purchases $ 92,000 Materials inventory, March 1 6,000 Materials
inventory, March 31 8,000 Direct labor 25,000 Factory overhead
37,000 Work in process, March 1 21,000 Work in process, March 31
23,500 Finished goods inventory, March 1 23,000 Finished goods
inventory, March 31 30,000 Sales 257,000 Sales and administrative
expenses 79,000
Prepare (a) a schedule of cost of goods manufactured, (b) an
income statement for the month ended March 31,...
Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March...
Zoe Corporation has the following information for the month of
March:
Purchases
$92,000
Materials inventory, March 1
6,000
Materials inventory, March 31
8,000
Direct labor
25,000
Factory overhead
37,000
Work in process, March 1
22,000
Work in process, March 31
23,500
Finished goods inventory, March 1
21,000
Finished goods inventory, March 31
30,000
Sales
257,000
Sales and administrative expenses
79,000
Required:
Prepare (a) a statement of cost of goods manufactured, (b) an
income statement for the month ended March 31,...
Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March...
Zoe Corporation has the following information for the month of
March:
Purchases
$92,000
Materials inventory, March 1
6,000
Materials inventory, March 31
8,000
Direct labor
25,000
Factory overhead
37,000
Work in process, March 1
22,000
Work in process, March 31
23,500
Finished goods inventory, March 1
21,000
Finished goods inventory, March 31
30,000
Sales
257,000
Sales and administrative expenses
79,000
Required:
Prepare (a) a statement of cost of goods manufactured, (b) an
income statement for the month ended March 31,...
Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March...
Zoe Corporation has the following information for the month of
March: Purchases $92,000 Materials inventory, March 1 6,000
Materials inventory, March 31 8,000 Direct labor 25,000 Factory
overhead 37,000 Work in process inventory, March 1 22,000 Work in
process inventory, March 31 23,500 Finished goods inventory, March
1 21,000 Finished goods inventory, March 31 30,000 Sales 257,000
Selling and administrative expenses 79,000 a. Prepare a schedule of
cost of goods manufactured. Enter all amounts as positive numbers.
Zoe Corporation Statement...
Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March...
Zoe Corporation has the following information for the month of
March:
Purchases
$92,000
Materials inventory, March 1
6,000
Materials inventory, March 31
8,000
Direct labor
25,000
Factory overhead
37,000
Work in process inventory, March
1
22,000
Work in process inventory, March
31
23,500
Finished goods inventory, March
1
21,000
Finished goods inventory, March
31
30,000
Sales
257,000
Selling and administrative
expenses
79,000
Required:
Prepare (a) a schedule of cost
of goods manufactured, (b) an income statement for the month ended...
Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March...
Zoe Corporation has the following information for the month of
March:
Purchases
$92,000
Materials inventory, March 1
6,000
Materials inventory, March 31
8,000
Direct labor
25,000
Factory overhead
37,000
Work in process inventory, March 1
22,000
Work in process inventory, March 31
23,500
Finished goods inventory, March 1
21,000
Finished goods inventory, March 31
30,000
Sales
257,000
Selling and administrative expenses
79,000
a. Prepare a schedule of cost of goods
manufactured. Enter all amounts as positive numbers.
Zoe Corporation
Statement...
A company reports the following beginning inventory and two purchases for the month of January. On...
A company reports the following beginning inventory and two
purchases for the month of January. On January 26, the company
sells 260 units. Ending inventory at January 31 totals 120 units.
Units Unit Cost Beginning inventory on January 1 230 $ 2.10
Purchase on January 9 50 2.30 Purchase on January 25 100 2.44
Required: Assume the perpetual inventory system is used. Determine
the costs assigned to ending inventory when costs are assigned
based on LIFO.
A company reports the following beginning inventory and two purchases for the month of January. On...
A company reports the following beginning inventory and two
purchases for the month of January. On January 26, the company
sells 320 units. Ending inventory at January 31 totals 140
units.
Units
Unit Cost
Beginning inventory on January 1
290
$
2.70
Purchase on January 9
70
2.90
Purchase on January 25
100
3.04
Required:
Assume the perpetual inventory system is used. Determine the costs
assigned to ending inventory when costs are assigned based on the
FIFO method. Use a...
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