Question

In: Accounting

1. Raw materials inventory $ 74000 $ 58000 Work in process inventory 98000 110000 Finished goods...

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 1 year ago

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