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(Solved): 1.The movements in the raw materials balance in a company within the month of May are as follows. ...



1.The movements in the raw materials balance in a company within the month of May are as follows. What is the direct material cost during May if we employ FIFO? What is the ending balance of raw materials?  

2.Refer to Question 1. What is the direct material cost during May if we employ LIFO? What is the ending balance of raw materials?

3.Refer to Question 1. What is the direct material cost during May if we employ weighted average method? What is the ending balance of raw materials?

4.Refer to Question 1. Suppose that we employ FIFO. What would be the relevant journal entry on May 25th?

5.Suppose that a manufacturing company pays a one-time bonus to the labors at the end of each February. The budgeted bonus is, let's say, 2.400.000 TL. How would you record the relevant entry at the end of January?

6.Refer to Question 5. How would you record the relevant entries at the end of February?

 

 

7.What does the following journal entry imply to you?

 

8.Suppose that a company purchases a computer to be used in the manufacturing department at the beginning of 2019. The price paid is 4.800 TL. The useful life of the computer is 4 years. Let's assume that the company employs accelerated method of depreciation in annual terms. What would be the journal entry regarding the depreciation at the end of 2019?

 

9.Refer to Question 8. What if the company switches to the straight-line method at the beginning of 2020?   What would be the journal entry regarding the depreciation at the end of 2020 then?

 

10.Suppose that at the beginning of November, the beginning balance of raw materials shows 100 tons of coals which cost 696 TL per ton. The purchases during December are as follows: (a) 05.12 - 200 tons x 692 TL/ton; (b) 15.12 - 60 tons x 710 TL/ton; (c) 25.12 - 40 tons x 735 TL/ton. At the end of December, the ending balance of raw materials shows 120 tons of coals. What is the cost of consumption during December if we use LIFO? What is the cost of raw materials as of the end of December if we use FIFO?



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To determine the direct material cost during May using the FIFO method, you would need to know the cost of the raw materials that were added to the in
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