Question

1- Towson Manufacturing had a Work in Process balance of $106,000 on January 1, 2018. The year end balance of Work in Process was $140,000 and the Cost of Goods Manufactured was $675,000. Use this information to determine the total manufacturing costs incurred during the fiscal year 2018. (Round enter as whole dollars only.)

2-

During FY 2018, Towson Manufacturing had a beginning finished goods inventory of $24,000 & ending finished goods inventory of $17,500. Beginning work-in-process was $20,000 and ending work-in-process was 15,500. Factory overhead was $22,500. The total manufacturing costs amounted to $288,000. Use this information to determine the FY 2018 Cost of Goods Sold. (Round enter as whole dollars only.)

3- During FY 2019, Dorchester Company plans to sell Widgets for $12 a unit. Current variable costs are $6 a unit and fixed costs are expected to total of $141,000. Use this information to determine the number of units of Widgets for Dorchester to breakeven.  (Round to the nearest whole number)

Answer 1

1.

Cost of Goods Manufactured = Total manufacturing costs + Beginning WIP - Ending WIP

Total manufacturing costs = Cost of Goods Manufactured - Beginning WIP + Ending WIP

= 675,000-106,000+140,000

= $709,000

2.

SCHEDULE OF COST OF GOODS MANUFACTURED
	$
Total manufacturing costs	288,000
Add: Beginning Work in process inventor	20,000
Less: Ending Work in process inventory	(15,500)
Cost of goods manufactured	292,500

Schedule of Cost of Goods Sold
Beginning finished goods inventory	$24,000
Cost of goods manufactured	292,500
Ending finished goods inventory	(17,500)
Cost of goods sold	$299,000

3.

Break Even = Fixed Cost / Contribution per unit

= 141,000 / (12-6)

= 23,500 units

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