Question

The Foxboro Manufacturing Company provided you with the following information for the fiscal year end December 31

Work-in-process inventory, 12/31	57,900
Finished goods inventory, 1/1	307,400
Direct labor costs incurred	1,004,300
Manufacturing overhead costs	2,693,400
Direct materials inventory, 1/1	250,800
Finished goods inventory, 12/31	511,000
Direct materials purchased	1,750,200
Work-in-process inventory, 1/1	101,000
Direct materials inventory, 12/31	169,400

A) Compute the total manufacturing costs incurred during the year.

B) Compute the total work-in-process during the year.

C) Compute cost of goods manufactured during the year.

D) Compute the cost of goods sold during the year.

E) Compute the total prime costs for the year.

F) Compute the total conversion costs for the year.

Answer 1

Solution

A) Total manufacturing costs incurred during the year. $ 5,529,300

B) Total work-in-process during the year. $ 5,630,300

C) Cost of goods manufactured during the year. $ 5,572,400

D) Cost of goods sold during the year. $ 5,368,800

E) Total prime costs for the year.$ 2,835,900

F) Total conversion costs for the year.$ 3,697,700

Working

Schedule of Cost of Goods Manufactured and Sold
Direct Material
Raw material Inventory Beginning	$     250,800.00
Raw material Purchased	$ 1,750,200.00
Raw material available for use	$ 2,001,000.00
Less: Raw material Inventory Ending	$     169,400.00
Direct Material Used		$   1,831,600.00
Direct labor		$   1,004,300.00
Prime cost		$   2,835,900.00
Total Manufacturing overheads		$   2,693,400.00
Total manufacturing Cost During the month		$   5,529,300.00
Add: Work in process Beginning		$      101,000.00
Total Work in Process		$   5,630,300.00
Less: Work in progress Ending		$         57,900.00
Cost of Goods Manufactured		$   5,572,400.00
Add: Beginning finished goods		$      307,400.00
Less: Ending finished goods		$      511,000.00
Cost of goods sold		$   5,368,800.00

Conversion cost = Direct labor + Overhead