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?

Solutions

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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