information for June: June 1 June 30 Direct materials $63,000 $27,000 Work in process $44,000 $18,000 Finished goods $59,000 $36,000 During June, Ant Company had the following costs: Direct materials purchased ...$123,000 Sales commissions ...... Prime costs........ $ 74,000 ...... $228,000 ..... $ 56,000 Advertising....... Depreciation, sales equipment....$ 21,000 Unadjusted cost of goods sold ......$394,000 Calculate Ant Company's conversion costs for
information for June: June 1 June 30 Direct materials $63,000 $27,000 Work in process $44,000 $18,000 Finished goods $59,000 $36,000 During June, Ant Company had the following costs: Direct materials purchased ...$123,000 Sales commissions ...... Prime costs........ $ 74,000 ...... $228,000 ..... $ 56,000 Advertising....... Depreciation, sales equipment....$ 21,000 Unadjusted cost of goods sold ......$394,000 Calculate Ant Company's conversion costs for
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Ant Company has the following inventory
information for June:
June 1 June 30
Direct materials $63,000 $27,000
Work in process $44,000 $18,000
Finished goods $59,000 $36,000
During June, Ant Company had the following
costs:
Direct materials purchased ...$123,000
Sales commissions ..................$ 74,000
Prime costs ......
. $228,000
Advertising .....
$ 56,000
Depreciation, sales equipment....$ 21,000
Unadjusted cost of goods sold ......$394,000
Calculate Ant Company's conversion costs for
June.
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