Question

River Queen Corporation began operations early in the current year, building luxury boats.
During the year, the company started and completed 80 boats at a cost of $80,000 per unit. Of
these, 50 were sold for $150,000 each and 30 remain in finished goods inventory. In addition,
the company had 10 partially completed units in its factory at year-end. Total costs for the year
(summarized alphabetically) were as follows:
Direct materials used
$ 3,000,000
Direct labor applied to production
4,000,000
Income taxes expense
60,000
General and administrative expenses
500.000
Applied Manufacturing overhead
25% of labour cost
Selling expenses
500.000
Instructions
A. Compute the following for the current year: (6x2-12)
1 Total manufacturing costs charged to work in process during the period,
il Cost finished goods manufactured,
ill. Cost of goods sold.
iv. Gross profit on sales.
V. Earnings after tax
vi. Ending inventories of (1) work in process and (2) finished goods.
B. Prepare Schedule of Cost of Goods Sold and Income Statements following the appropriate
format. (8)
C Prepare journal entries to record (20)
Purchase of material assuming all material was used.
Issuance and usage of material for production
1. Preparation of the payroll
iv. Allocation of the direct payroll costs to WIP
Application of FOH
vi transfer the cost of goods completed from WIP to FG Inventory
vil sale of goods on account under the perpetual system of inventory
vill actual FOH of $ 1,001,000
i disposal of the insignificant amount of over or under applied

Answer 1

Answer:

$\huge{\underline{\sf{\orange{Answer -}}}}$

$let \: the \: whole \: quantity \: = x$

$A/Q$

$5\% \: of \: x = 600 \\ \\ = > \frac{5 \times x}{100} = 600 \\ \\ \\= > 5 \times x = 600 \times 100 \\ \\ \\ \ \: = > x = \frac{600 \times 100}{5} \\ \\ \: \\ = > x = \frac{120 \times 100}{1} \: \\ \\ x = 12000$

Therefore, The whole quantity = 12000