Parkside Inc. had a raw materials inventory of $90,000 on January 1. At the end of the year, December 31, the raw materials inventory was $65,000. During the year, Parkside purchased $820,000 of raw materials. What amount of raw materials was transferred to production during the year?

Parkside Inc. had a raw materials inventory of $90,000 on January 1. At the end of the year, December 31, the raw materials inventory was $65,000. During the year, Parkside purchased $820,000 of raw materials. What amount of raw materials was transferred to production during the year?

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 22E: Ellerson 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. 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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