Accounting records indicate the following inventory balances for the year 20yy. Calculate the indirect factory costs incurred (manufacturing overhead) for 20yy using the information below: Inventory Accounts 1/1/yy 12/31/yy Materials Inventory $30,000 $15,000 Work in Process Inventory $0 $20,000 Finished Goods Inventory $12,000 $22,000 Other Data (for the year 1/1/yy to 12/31/yy): 1. Prime costs were $450,000 2. Twelve times the amount of beginning materials inventory was purchased during the year 3. Direct labor costs, which make up 35% of conversion costs, were $280,000 4. The company maintains an average gross margin of 25%

Accounting records indicate the following inventory balances for the year 20yy. Calculate the indirect factory costs incurred (manufacturing overhead) for 20yy using the information below: Inventory Accounts 1/1/yy 12/31/yy Materials Inventory $30,000 $15,000 Work in Process Inventory $0 $20,000 Finished Goods Inventory $12,000 $22,000 Other Data (for the year 1/1/yy to 12/31/yy): 1. Prime costs were $450,000 2. Twelve times the amount of beginning materials inventory was purchased during the year 3. Direct labor costs, which make up 35% of conversion costs, were $280,000 4. The company maintains an average gross margin of 25%

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 1E: Inventory Accounts for a Manufacturing Company Fujita Company produces a single product. Costs...

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