Question

Good Slings Inc. manufactures several wood and string instruments at its factory in Thunder Bay. In particular, it is well-known for its production of classic guitars. Assume that Good Slings uses a periodic inventory system and a physical count of inventory takes place at year end. The company accumulated the following costs and account balances for the year ended December 31, 2010 with respect to direct materials:

Balance of materials on January 1, 2010	$197,000
Balance of materials on December 31, 2010	$170,000
Materials purchases during 2010	$744,000

In addition, the following table shows Good Slings’ remaining costs for the year:

Indirect materials	$60,000
Direct labor	$287,000
Indirect labor	$158,000
Utilities, factory	$73,000
Utilities, office	$27,000
Insurance, factory	$17,000
Advertising	$21,000

Do not enter dollar signs or commas in the input boxes.

a) Calculate the cost of direct materials used in production for the year.

Materials used in production: $Answer
b) What is the total manufacturing overhead cost for the year?

Manufacturing Overhead: $Answer
c) Calculate total manufacturing costs.

Total Manufacturing Costs: $Answer
d) If there is no beginning work in process inventory and ending work in process inventory is $54,000, what is the cost of goods manufactured?

Cost of Goods Manufactured: $Answer

Answer 1