DENTON INC. HAS PROVIDED THE FOLLOWING DATA FOR THE MONTH OF DECEMBER. 1. THE BALANCE IN THE FINISHED GOODS INVENTORY ACCOUNT AT THE BEGINNING OF THE MONTH WAS $65,000, AND AT THE END OF THE MONTH WAS $32,000. 2. THE COST OF GOODS MANUFACTURED FOR THE MONTH WAS $220,000. 3. THE ACTUAL MANUFACTURING OVERHEAD COST INCURRED WAS $58,000, AND THE MANUFACTURING OVERHEAD COST APPLIED TO WORK IN PROCESS WAS $63,000. 4. THE COMPANY CLOSES OUT ANY UNDERAPPLIED OR OVERAPPLIED MANUFACTURING OVERHEAD TO THE COST OF GOODS SOLD. THE ADJUSTED COST OF GOODS SOLD THAT WOULD APPEAR ON THE INCOME STATEMENT FOR DECEMBER IS: A. $239,000 B. $187,000 c. $248,000 D. $222,000

DENTON INC. HAS PROVIDED THE FOLLOWING DATA FOR THE MONTH OF DECEMBER. 1. THE BALANCE IN THE FINISHED GOODS INVENTORY ACCOUNT AT THE BEGINNING OF THE MONTH WAS $65,000, AND AT THE END OF THE MONTH WAS $32,000. 2. THE COST OF GOODS MANUFACTURED FOR THE MONTH WAS $220,000. 3. THE ACTUAL MANUFACTURING OVERHEAD COST INCURRED WAS $58,000, AND THE MANUFACTURING OVERHEAD COST APPLIED TO WORK IN PROCESS WAS $63,000. 4. THE COMPANY CLOSES OUT ANY UNDERAPPLIED OR OVERAPPLIED MANUFACTURING OVERHEAD TO THE COST OF GOODS SOLD. THE ADJUSTED COST OF GOODS SOLD THAT WOULD APPEAR ON THE INCOME STATEMENT FOR DECEMBER IS: A. $239,000 B. $187,000 c. $248,000 D. $222,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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OReilly Manufacturing Co.s cost of goods sold for the month ended July 31 was 345,000. The ending work in process inventory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. No indirect materials were used during the period. Other information pertaining to OReillys inventories and production for July is as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information. Start by using cost of goods sold to solve for the cost of goods manufactured.) 2. Prepare a schedule to compute the prime cost incurred during July. 3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.
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?
During March, the following costs were charged to the manufacturing department: $22,500 for materials; $45,625 for labor; and $50,000 for manufacturing overhead. The records show that 40,000 units were completed and transferred, while 10,000 remained in ending inventory. There were 45,000 equivalent units of material and 42,500 units of conversion costs. Using the weighted-average method, prepare the companys process cost summary for the month.
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