Question

Explain how you find each number

T2-2  Processing costing: Cost flows (LO 2) Fill in the missing data (ignore indirect materials).

	Raw Materials Inventory		WIP—Department 1		WIP—Department 2		Finished Goods Inventory
Beginning balance	$150,000		$ 60,000		$ 51,000		$250,000
Materials purchased	805,000
Direct materials used		$800,000	630,000		c.
Conversion costs incurred			516,000		180,000
Transfers of completed units				$1,100,000	d.	e.	f.	g.
Cost of goods sold
Ending balance	a.		b.		$ 31,000		$150,000

T2-3  Process costing: Cost flows (LO 2) Fill in the missing data (ignore indirect materials).

	Raw Materials Inventory		WIP—Department 1		WIP—Department 2		Finished Goods Inventory
Beginning balance	a.		$ 36,000		$ 13,000		$63,000
Materials purchased	$250,000
Direct materials used		b.	200,000		80,000
Conversion costs incurred			85,000		e.
Transfers of completed units				d.	300,000	f.	g.
Cost of goods sold								$512,000
Ending balance	$ 16,000		c.		$ 8,000		$41,000

Answer 1

T2-2

	Particulars	Amount
a	Raw materials inventory
	Opening balance	1,50,000
	Add purchases	8,05,000
	Less used	8,00,000
	Closing blaance	1,55,000
b	Opening WIP	60,000
	Materials	6,30,000
	Conversion costs	5,16,000
	Less Transfer	(11,00,000)
	Closing balance	1,06,000
c	Total direct materials used	8,00,000
	Less used in WIP 1	(6,30,000)
	Used in WIP 2=	1,70,000
d	Opening	51,000
	Add materials	1,70,000
	Conversion	1,80,000
	Less closing	(31,000)
	Transfer to FG	3,70,000
e	Transfer from WIP 1	11,00,000
f	Transfer from WIP 2	3,70,000
	Add opening	2,50,000
	Total goods available for sale	17,20,000
	Less closing FG	(1,50,000)
g	Cost of goods sold	15,70,000

T2-3

	Particulars	Amount
b	Used in WIP 1	2,00,000
	Used in WIP 2	80,000
	Total raw materials used	2,80,000
a	Ending balance	16,000
	Add used	2,80,000
	Less purchases	(2,50,000)
	Opening	46,000
g	Cost of goods sold	5,12,000
	Add closing balance	41,000
	Less opening	(63,000)
	Transfer from WIP	4,90,000
d	Total transfer to FG	4,90,000
	Less from WIP 2	(3,00,000)
	Transfer from WIP 1	1,90,000
c	Opening	36,000
	Materials added	2,00,000
	Conversion costs	85,000
	Less transfer to finished goods	(1,90,000)
	Closing balance	1,31,000