question archive The following information applies to the questions displayed below
The following information applies to the questions displayed below
Subject:AccountingPrice:3.87 Bought7
The following information applies to the questions displayed below.
Assume the raw materials inventory account is used only for direct materials. Note: Assume all raw materials were used as direct materials.
Beginning of Year End of Year
Inventories
Raw materials inventory $ 7,800 $ 11,100
Work in process inventory 15,600 10,800
Finished goods inventory 12,100 7,300
Activity during current year
Raw materials purchased $ 127,100
Direct labor 95,800
Factory overhead 44,400
QS 1-17 (Algo) Schedule of cost of goods manufactured LO P2
Factory overhead of $44,400 consists of Indirect labor of $21,800, Depreciation expense—Factory of $16,800, and Factory utilities of $5,800.
a. Compute total manufacturing costs.
b. Prepare a schedule of cost of goods manufactured.
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Answer:
a
Raw materials used
= (Beginning raw materials + raw materials purchased) - Closing raw materials
= (7,800 + 127,100) - 11,100 = $123,800
Total Manufacturing cost
= raw materials used + direct labour + factory overhead
= 123,800 + 95,800 + 44,400 = $264,000
b
| Particulars | $ | $ |
| Direct material used: | ||
| Beginning raw materials | 7,800 | |
| Add raw materials purchased | 127,100 | |
| Raw materials available for production | 134,900 | |
| Less Closing raw materials | (11,100) | |
| Raw materials used | 123,800 | |
| Direct labour | 95,800 | |
| Factory overhead: | ||
| Depreciation expense | 16,800 | |
| Factory utilities | 5,800 | |
| Indirect labour | 21,800 | |
| Total factory overhead | 44,400 | |
| Total Manufacturing cost | 264,000 | |
| Add Beginning work in process | 15,600 | |
| 279,600 | ||
| Less Closing work in process | (10,800) | |
| Cost of goods manufactured | 268,800 |
$268,800 is cost of goods manufactured and total manufacturing cost is $264,000.
