Question
In: Accounting
Example 38: The following data should be used for the next few questions: Raw materials inventory,...
Example 38: The following data should be used for the next few questions:
Raw materials inventory, January 1 $ 12,000
Raw materials inventory, December 31 16,000
Work in process, January 1 5,000
Work in process, December 31 8,000
Finished goods, January 1 17,000
Finished goods, December 31 12,000
Raw materials purchases 118,000
Direct labor 165,000
Factory utilities 64,000
Indirect labor 12,000
Factory depreciation 18,000
Selling and administrative expenses 220,000
How much is the cost of the direct materials used?
a. $118,000
b. $114,000
c. $122,000
d. $130,000
Example 39: Assume your answer to question 38 above is $130,000. How much are total manufacturing costs?
a. $389,000
b. $393,000
c. $295,000
d. $609,000
Example 40: Assume your answer to question 39 above is $400,000. How much is cost of goods manufactured?
a. $400,000
b. $389,000
c. $397,000
d. $403,000
Example 41: Assume your answer to question 40 above is $420,000. How much is cost of goods sold?
a. $420,000
b. $408,000
Page | 9
c. $295,000
d. $425,000
Solutions
Expert Solution
| Example (38) | ||
| Cost of direct material used | b. $114,000 | |
| Working: | ||
| Raw materials inventory, January 1 | $ 12,000 | |
| Add:Raw materials purchases | $ 1,18,000 | |
| Raw Materials available for use | $ 1,30,000 | |
| Less Raw materials inventory, December 31 | $ 16,000 | |
| Cost of direct material used | $ 1,14,000 | |
| Example (39) | ||
| Total Manufacturing costs | a. $389,000 | |
| Working: | ||
| Direct Materials used | $ 1,30,000 | |
| Direct Labor | $ 1,65,000 | |
| Factory utilities | $ 64,000 | |
| Indirect Labor | $ 12,000 | |
| Factory Depreciation | $ 18,000 | |
| Total Manufacturing costs | $ 3,89,000 | |
| Example (40) | ||
| Cost of goods manufactured | c. $397,000 | |
| Working: | ||
| Total Manufacturing costs | $ 4,00,000 | |
| Add: Work in process, January 1 | $ 5,000 | |
| Less:Work in process, December 31 | $ 8,000 | |
| Cost of goods manufactured | $ 3,97,000 | |
| Example (41) | ||
| Cost of goods sold | d. $425,000 | |
| Working: | ||
| Cost of goods manufactured | $ 4,20,000 | |
| Add:Finished goods, January 1 | $ 17,000 | |
| Less:Finished goods, December 31 | $ 12,000 | |
| Cost of goods sold | $ 4,25,000 | |
ekkarill92 answered 1 year agoRelated Solutions
The following data should be used for the question(s) below: Raw materials inventory, January 1 $...
The following data should be used for the question(s) below:
Raw materials inventory, January 1 $ 12,000
Raw materials inventory, December 31 16,000
Work in process, January 1 5,000
Work in process, December 31 8,000
Finished goods, January 1 17,000
Finished goods, December 31 12,000
Raw materials purchases 118,000
Direct labor 165,000
Factory utilities 64,000
Indirect labor 12,000
Factory depreciation 18,000
Selling and administrative expenses 220,000
1) Assume manufacturing costs is $400,000. How much is cost of
goods manufactured? 2)...
Using the following information, compute the direct materials used. Raw materials inventory, January 1 $&
Using the following information,
compute the direct materials used.
Raw materials inventory, January
1
$ 20,000
Raw materials inventory, December
31
40,000
Work in process, January
1
18,000
Work in process, December
31
12,000
Finished goods, January
1
40,000
Finished goods, December
31
32,000
Raw materials
purchases
1,400,000
Direct
labor
560,000
Factory
utilities
150,000
Indirect
labor
50,000
Factory
depreciation
400,000
Operating
expenses
420,000
a. $1,460,000.
b. $1,420,000.
c. $1,400,000.
d. $1,380,000.
Why it's D ????
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