Question

In: Accounting

using the information below: Advertising expenses $ 16,000 Depreciation expense - admin. office 107,000 Depreciation expense...

using the information below:

Advertising expenses	$	16,000
Depreciation expense - admin. office		107,000
Depreciation expense - plant		197,000
Direct materials inventory, beginning		33,000
Direct materials inventory, ending		28,000
Direct materials purchases		190,000
Direct labor		345,000
Finished goods inventory, beginning		66,000
Finished goods inventory, ending		43,000
Heat and light for plant		23,000
Indirect labor		128,000
Insurance on plant		44,000
Repairs on plant building		34,000
Sales representatives' salaries		258,000
Sales revenue		1,675,000
Supervisor's salary - plant		106,000
Work-in-process inventory, beginning		14,000
Work-in-process inventory, ending		11,000

1.What is the cost of direct materials used?

2.How much is the total amount of manufacturing overhead cost?

3.What is the cost of goods manufactured?

4.What is the cost of goods sold?

5.What is total amount of period costs?

Expert Solution

Answer 1.

Direct materials used = Direct materials inventory, beginning + Direct materials purchases - Direct materials inventory, ending
Direct materials used = $33,000 + $190,000 - $28,000
Direct materials used = $195,000

Answer 2.

Manufacturing overhead = Depreciation expense-Plant + Heat and light for plant + Indirect labor + Insurance on plant + Repairs on plant building + Supervisor's salary-Plant
Manufacturing overhead = $197,000 + $23,000 + $128,000 + $44,000 + $34,000 + $106,000
Manufacturing overhead = $532,000

Answer 3.

Manufacturing cost = Direct materials used + Direct labor + Manufacturing overhead
Manufacturing cost = $195,000 + $345,000 + $532,000
Manufacturing cost = $1,072,000

Cost of goods manufactured = Work-in-process inventory, beginning + Manufacturing cost - Work-in-process inventory, ending
Cost of goods manufactured = $14,000 + $1,072,000 - $11,000
Cost of goods manufactured = $1,075,000

Answer 4.

Cost of goods sold = Finished goods inventory, beginning + Cost of goods manufactured - Finished goods inventory, ending
Cost of goods sold = $66,000 + $1,075,000 - $43,000
Cost of goods sold = $1,098,000

Answer 5.

Period costs = Advertising expenses + Depreciation expense-Admin. Office + Sales representatives' salaries
Period costs = $16,000 + $107,000 + $258,000
Period costs = $381,000

ekkarill92 answered 2 years ago

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