Crunchem Cereal Company incurred the following actual costs during 20x1. Direct material used .........................................................................................$275,000Direct labor ............................................................................................................120,000Manufacturing overhead ...................................................................................252,000 The firm’s predetermined overhead rate is 210 percent of direct-labor cost. The January 1 inventory balances were as follows:Raw material ......................................................................................................$30,000Work in process ..................................................................................................39,000Finished goods ...................................................................................................42,000 Each of these inventory balances was 10 percent higher at the end of the year.Required:1. Prepare a schedule of cost of goods manufactured for 20x1.2. What was the cost of goods sold for the year?3. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: direct material used amounted to $281,000 and raw-material inventory on December 31 was $28,000.
Crunchem Cereal Company incurred the following actual costs during 20x1.
Direct material used .........................................................................................$275,000
Direct labor ............................................................................................................120,000
Manufacturing
The firm’s predetermined overhead rate is 210 percent of direct-labor cost. The January 1 inventory balances were as follows:
Raw material ......................................................................................................$30,000
Work in process ..................................................................................................39,000
Finished goods ...................................................................................................42,000
Each of these inventory balances was 10 percent higher at the end of the year.
Required:
1. Prepare a schedule of cost of goods manufactured for 20x1.
2. What was the cost of goods sold for the year?
3. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: direct material used amounted to $281,000 and raw-material inventory on December 31 was $28,000.
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