Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 1 (15 marks) Part A Sim Lim Company has the following closing balances for the year ended December 30, 2020. Direct materials $15,000
Question 1 (15 marks) Part A Sim Lim Company has the following closing balances for the year ended December 30, 2020. Direct materials $15,000 Dr Work-in-Process $34,500 Dr Finished Goods $49,500 Dr Cost of Goods Sold $74,500 Dr Additional information is as follows: Cost of materials purchased during 2020 $41,000 Cost of direct materials used in production during 2020 $47,000 Cost of direct labour used in production during 2020 $40,000 Cost of goods completed during 2020 $102,000 Factory overhead allocated to production during 2020 $48,000 Required: 1. Compute the opening balance of Work-in-Process. (2 marks) 2. Compute the opening balance of Finished Goods. (2 marks) 3. Discuss what you can observe about the flow of costs at Sim Lim Company. (4 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started