A&B Corporation reported a cost of goods manufactured of $610,000. The firm's year-end balance sheet shows work in process and finished goods inventory amounts of $90,000 and $156,000, respectively. Additional data reveals that raw materials used in production were $100,000, direct labor was $160,000, and manufacturing overhead totaled $280,000. Furthermore, the company purchased office supplies worth $5,000, which is unrelated to the manufacturing process. What must have been the company's beginning work in process? Delta Industries reported a cost of goods manufactured of $720,000. The firm's balance sheet showed work in process and finished goods inventory amounts of $110,000 and $180,000, respectively. Supplemental information revealed raw materials used of $130,000, direct labor of $190,000, and manufacturing overhead of $300,000. Additionally, the firm made a donation of $8,000 to charity during the year. What must have been the company's beginning work in process? A. $90,000 B. None of the other answers are correct. C. $600,000 D. $70,000

A&B Corporation reported a cost of goods manufactured of $610,000. The firm's year-end balance sheet shows work in process and finished goods inventory amounts of $90,000 and $156,000, respectively. Additional data reveals that raw materials used in production were $100,000, direct labor was $160,000, and manufacturing overhead totaled $280,000. Furthermore, the company purchased office supplies worth $5,000, which is unrelated to the manufacturing process. What must have been the company's beginning work in process? Delta Industries reported a cost of goods manufactured of $720,000. The firm's balance sheet showed work in process and finished goods inventory amounts of $110,000 and $180,000, respectively. Supplemental information revealed raw materials used of $130,000, direct labor of $190,000, and manufacturing overhead of $300,000. Additionally, the firm made a donation of $8,000 to charity during the year. What must have been the company's beginning work in process? A. $90,000 B. None of the other answers are correct. C. $600,000 D. $70,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
A&B Corporation reported a cost of goods manufactured of $610,000. The firm's year-end balance sheet shows work in process and finished goods inventory amounts of $90,000 and $156,000, respectively. Additional data reveals that raw materials used in production were $100,000, direct labor was $160,000, and manufacturing overhead totaled $280,000. Furthermore, the company purchased office supplies worth $5,000, which is unrelated to the manufacturing process. What must have been the company's beginning work in process? Delta Industries reported a cost of goods manufactured of $720,000. The firm's balance sheet showed work in process and finished goods inventory amounts of $110,000 and $180,000, respectively. Supplemental information revealed raw materials used of $130,000, direct labor of $190,000, and manufacturing overhead of $300,000. Additionally, the firm made a donation of $8,000 to charity during the year. What must have been the company's beginning work in process? A. $90,000 B.…
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CPL Company reported a cost of goods manufactured of $520,000, with the firm's year-end balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively. If supplemental information disclosed raw materials used in the production of $80,000, direct labor of $140,000, and manufacturing overhead of $240,000, the company's beginning work in the process must have been: A. $66,000. B. None of the other answers are correct. C. $390,000. D. $10,000.
Hawthorn Industries is calculating its Cost of Goods Manufactured at year-end. The company's accounting records show the following: The Raw Materials Inventory account had a beginning balance of $18,000 and an ending balance of $16,000. During the year, the company purchased $66,000 of direct materials. Direct labor for the year totaled $120,000, while manufacturing overhead amounted to $161,000. The Work in Process Inventory account had a beginning balance of $30,000 and an ending balance of $19,000. Assume that Raw Materials Inventory contains only direct materials. Compute the Cost of Goods Manufactured for the year. (Hint: The first step is to calculate the direct materials used during the year.) Start by calculating the direct materials used during the year. Hawthorn Industries Calculation of Direct Materials Used For Current Year Beginning raw materials inventory Plus: Purchases of direct materials Materials available for use Less: Ending raw materials inventory Direct materials…
Hawthorn Industries is calculating its Cost of Goods Manufactured at year-end. The company's accounting records show the following: The Raw Materials Inventory account had a beginning balance of $12,000 and an ending balance of $17,000. During the year, the company purchased $63,000 of direct materials. Direct labor for the year totaled $135,000, while manufacturing overhead amounted to $156,000. The Work in Process Inventory account had a beginning balance of $21,000 and an ending balance of $19,000. Assume that Raw Materials Inventory contains only direct materials. Compute the Cost of Goods Manufactured for the year. (Hint: The first step is to calculate the direct materials used during the year.) Start by calculating the direct materials used during the year. Hawthorn Industries Calculation of Direct Materials Used For Current Year Plus: Less: Direct materials used