3. Manufacturing costs. Last month, Hulse Company put into process $60,000 of materials. The Grinding Department used 8,000 labor hours at $5.60 per hour, and the Machining Department used 4,600 hours at a cost of $6 per hour. Factory overhead is appliad at a rate of $6 per labor hour in the Grinding Department and $8 per labor hour in the Machining Department. Inventory accounts had the following beginning and ending Salancas: Beginning- Finished goods.... Work in procass. Materials.. $22,000 15,000 20,000 Ending $17,000 17,600 18,000 ... ...... Required: Without preparing a formal income statement, compute the following (1) Total cost of work put into process. (2) Cost of goods manufactured. (3) Cost of goods sold. (4) Conversion cost. (5) Cost of materials purchased.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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3." Manufacturing costs. Last month, Hulse Company put into process $60,000 of
materials. The Grinding Department used 8,000 labor hours at $5.60 per hour, and the
Machining Department used 4,600 hours at a cost of $6 per hour. Factory overhead is
appliad at a rate of $6 per labor hour in the Grinding Department and $8 per labor hour in
the Machining Department, Inventory accounts had the following beginning and ending
Salancas:
Finished goods....
Work in procass.. ..
Materials..
Beginning
$22,000
15,000
20,000
Ending
$17,000
17,600
18,000
.........
Required: Without preparing a formal.income statement, compute the following.
(1) Total cost of work put Into process.
(2) Cost of goods manufactured.
(3) Cost of goods sold.
(4) Conversion cost.
(5) Cost of materials purchased.
Transcribed Image Text:3." Manufacturing costs. Last month, Hulse Company put into process $60,000 of materials. The Grinding Department used 8,000 labor hours at $5.60 per hour, and the Machining Department used 4,600 hours at a cost of $6 per hour. Factory overhead is appliad at a rate of $6 per labor hour in the Grinding Department and $8 per labor hour in the Machining Department, Inventory accounts had the following beginning and ending Salancas: Finished goods.... Work in procass.. .. Materials.. Beginning $22,000 15,000 20,000 Ending $17,000 17,600 18,000 ......... Required: Without preparing a formal.income statement, compute the following. (1) Total cost of work put Into process. (2) Cost of goods manufactured. (3) Cost of goods sold. (4) Conversion cost. (5) Cost of materials purchased.
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