Question
In: Accounting
1. Raw materials inventory $ 74000 $ 58000 Work in process inventory 98000 110000 Finished goods...
1.
| Raw materials inventory | $ 74000 | $ 58000 | |
| Work in process inventory | 98000 | 110000 | |
| Finished goods inventory | 100000 | 92000 |
During 2020, Waterway purchased $1450000 of raw materials, incurred
direct labor costs of $250000, and incurred manufacturing overhead
totaling $160000.
How much is total manufacturing costs incurred during 2020 for
Waterway?
$1860000
$1876000
$1872000
$1864000
2. A process began the month with 2900 units in the beginning
work in process inventory and ended the month with 2100 units in
the ending work in process. If 22800 units were completed and
transferred out of the process during the month, how many units
were started into production during the month?
22000.
22800.
23600.
20700.
3. A process began the month with 2700 units in the beginning
work in process inventory and ended the month with 1600 units in
the ending work in process. If 21300 units were completed and
transferred out of the process during the month, how many units
were started into production during the month?
19700.
21300.
22400.
20200.
4. Concord Corporation's accounting records reflect the
following inventories:
| Dec. 31, 2019 | Dec. 31, 2020 | ||
| Raw materials inventory | $ 80000 | $ 64000 | |
| Work in process inventory | 104000 | 116000 | |
| Finished goods inventory | 100000 | 92000 |
During 2020, Concord purchased $1430000 of raw materials, incurred
direct labor costs of $250000, and incurred manufacturing overhead
totaling $160000.
Assume Concord’s cost of goods manufactured for 2020 amounted to
$1844000. How much would it report as cost of goods sold for the
year?
$1852000
$1944000
$1836000
$1752000
Solutions
Expert Solution
1) The total manufacturing costs incurred during 2020 for Waterway is calculated below:
| $ | |
|---|---|
| Direct Material: | |
| Raw material inventory Begining | 74,000 |
| Add: purchase of raw materials | 1,450,000 |
| Less : Raw material inventory Ending | (58,000) |
| Direct Material used in Production | 1,466,000 |
| Direct labor costs | 250,000 |
| Manufacturing overhead | 160,000 |
| Total manufacturing costs | $1,876,000 |
The total manufacturing costs incurred during 2020 for Waterway is $1,876,000
So correct answer is option (2) or $1,876,000
2) The number of units were started into production during the month is calculated below:
| Units | |
|---|---|
| Work in process, Ending (A) | 2,100 |
| Units completed and transferred out during the month (B) | 22,800 |
| Work in process, Begining (C) | 2,900 |
| Units started into production during the month (A + B - C) | 22,000 |
The number of units were started into production during the month is 22,000
So correct answer is option (1) or 22,000 Units
3) The number of units were started into production during the month is calculated below:
| Units | |
|---|---|
| Work in process, Ending (A) | 1,600 |
| Units completed and transferred out during the month (B) | 21,300 |
| Work in process, Begining (C) | 2,700 |
| Units started into production during the month (A + B - C) | 20,200 |
The number of units were started into production during the month is 20,200
So correct answer is option (4) or 20,200 Units
4) The cost of goods sold for the year is calculated below:
| $ | |
|---|---|
| Cost of Goods manufactured (A) | 1,844,000 |
| Add: Finished goods inventory, Begining (B) | 100,000 |
| Less: Finished goods inventory, Ending (C) | 92,000 |
| The cost of goods sold ( A + B - C) | $1,852,000 |
The cost of goods sold for the year is $1,852,000
So correct answer is option (1) or $1,852,000
ekkarill92 answered 2 years agoRelated Solutions
Work in Process Wages Manufacturing Finished Goods Raw Materials Inventory Payable Overhead Inventory Inventory 28,500 124,500...
Work in Process
Wages
Manufacturing
Finished Goods
Raw Materials
Inventory
Payable
Overhead
Inventory
Inventory
28,500
124,500
73,000
73,000
4,500
43,000
124,500
113,500
57,000
33,000
65,000
8,000
43,000
Balance 0
40,500
Unique produces screens for use in various smartphones. The
company reports the following information at December 31.
Unique began operations on January 31 earlier that same
year.
1.
What is the cost of direct materials used?
2.
What is the cost of indirect materials used?
3.
What is the cost...
Beginning Ending Raw materials $45,000 $51,000 Work in process $66,000 $74,000 Finished goods $38,000 $27,000 Raw...
Beginning Ending Raw materials $45,000 $51,000 Work in process
$66,000 $74,000 Finished goods $38,000 $27,000 Raw materials
purchases $88,000 Direct labor cost $94,000 Actual Manufacturing
overhead cost incurred $53,000 Indirect materials included in
manufacturing overhead cost incurred $13,000 Manufacturing overhead
cost applied to Work in Process $52,000 Any underapplied or
overapplied manufacturing overhead is closed out to cost of goods
sold. The adjusted cost of goods sold that appears on the income
statement for July is:
Businesses hold inventories of goods, partly as finished products and partly as goods-in-process and raw materials....
Businesses hold inventories of goods, partly as finished
products and partly as goods-in-process and raw materials. Suppose
that we think of inventories as a type of capital, which enters
into the production function. Then changes in these stocks
represent investment in inventories. (Typically, economists assume
that the rate of depreciation on inventories is near zero.)
How does an increase in the real interest rate affect the
quantity of inventories that businesses want to hold? What happens,
therefore, to inventory investment?...
1.The finished goods beginning inventory = $100,000; The finished goods ending inventory = $50,000; The work...
1.The finished goods beginning inventory = $100,000; The
finished goods ending inventory = $50,000; The work in process
inventory at the beginning of the year was $150,000 and at the end
of the year $50,000; The raw materials inventory at the beginning
of the year $80,000 and at the end of the year was $40,000.
Manufacturing costs and selling and administrative expenses were
as follows: indirect materials = $10,000; factory utilities =
$20,000; raw material purchases = $30,000 in June...
Which of the following are inventory accounts for a manufacturer? a. raw materials, work in process,...
Which of the following are inventory
accounts for a manufacturer?
a. raw materials, work in
process, and finished goods
b. direct labor, work in
process, and finished goods
c. manufacturing overhead,
raw materials, and direct labor
d. work in process, direct
labor, and manufacturing overhead
49. In a process cost system,
equivalent units of production are the
a. work done on physical
units expressed in fully completed units.
b. units that are
transferred to the next processing department.
c. units...
Under applied over head 14,000 Finished goods inventory, beginning 310,000 Finished goods inventory, ending 380,000 Raw...
Under applied over head
14,000
Finished goods inventory, beginning
310,000
Finished goods inventory, ending
380,000
Raw materials inventory, beginning
110,000
Raw materials inventory, ending
95,000
Work in process inventory, beginning
105,000
Work in process inventory, ending
85,000
Selling expenses
180,000
Manufacturing overhead Applied
490,000
Direct labor
390,000
Administrative expenses
385,000
Purchases of raw materials
295,000
Sales
2,885,000
Required:
1) Prepare a schedule of Cost of Goods Sold for the year in good
form? (Use the table given in the answer...
Beginning finished goods inventory $ 14,500 $ 16,300 Beginning work in process inventory 15,900 19,650 Beginning...
Beginning finished goods inventory
$
14,500
$
16,300
Beginning work in process inventory
15,900
19,650
Beginning raw materials inventory
10,500
14,400
Rental cost on factory equipment
28,750
26,500
Direct labor
25,000
42,600
Ending finished goods inventory
20,000
13,000
Ending work in process inventory
23,500
19,600
Ending raw materials inventory
7,200
8,800
Factory utilities
9,150
12,250
Factory supplies used
11,500
5,400
General and administrative expenses
32,500
44,500
Indirect labor
2,350
7,960
Repairs—Factory equipment
6,140
2,600
Raw materials purchases
37,000
59,000
Selling...
Item Beginning of Year End of Year Raw Materials Inventory $15,000 $25,000 Work in Process Inventory...
Item
Beginning of Year
End of Year
Raw Materials Inventory
$15,000
$25,000
Work in Process Inventory
$40,000
$31,000
Finished Goods Inventory
$10,000
$25,000
During the Year
Purchases of Raw Material
$82,000
Direct Labor Costs
$95,000
Manufacturing Overhead
$50,000
Answer……………………………………..Calculations
$__________1. Direct Materials Used
________________________________
$__________2. Total Manufacturing Costs Incurred
____________________________
$__________3. Total Manufacturing Cost__________________
$__________4. Cost of Goods
Manufactured___________________________
$__________5. Cost of Goods
Sold___________________________________
Berry Plastics is a manufacturer. Berry has inventory consisting of raw materials, work in process and...
Berry Plastics is a manufacturer. Berry has inventory consisting
of raw materials, work in process and finished goods totaling $24
million. Is Berry required to report the amounts for each class of
inventory or can it just report the total of $24 million? Prepare a
memo to me explaining your answer. You must provide Codification
references to support your answer or you will receive a You answer
should be in the FIRAC format discussed in the video or in
class....
Berry Plastics is a manufacturer. Berry has inventory consisting of raw materials, work in process and...
Berry Plastics is a manufacturer. Berry has inventory consisting
of raw materials, work in process and finished goods totaling $24
million. Is Berry required to report the amounts for each class of
inventory or can it just report the total of $24 million?
You must provide Codification references to support your
answer!
You answer should be in the FIRAC format
Facts Issue(s)(typically a question)
Review of authoritative literature (ASC)
Analysis (link the facts to the authority)
Conclude (answer the issue...
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