Question

 

The following information has been taken from the perpetual inventory system of Elite Mfg. Co. for the month ended August 31: The total amount of inventory to be included in Elite's August31^st balance sheet amounts to:

Purchases of direct materials	$	60,000
Direct materials used	$	50,000
Direct labor costs assigned to production	$	25,000
Manufacturing overhead costs incurred (and applied)	$	35,000

Balances in inventory	August 31			August 1
Materials	$	?			25,000
Work in Process	$	65,000			47,000
Finished Goods	$	60,000			43,000

Answer 1

 

Materials, August 1	$          25,000
Add: Purchase of direct material	$          60,000
Materials available for use	$        85,000
Less: materials used	$        (50,000)
Materials, August 31	$          35,000
	August 31
Materials	$          35,000
Work in process	$          65,000
Finished goods	$          60,000
Total amount of inventory	$        160,000
Direct Materials used	$          50,000
Direct labor costs assigned to production	$          25,000
manufacturing overhead costs incurred (and applied)	$          35,000
Total manufacturing costs charged	$        110,000