Question 2.2                                                                                                Lake Company recorded the following data for the month of January 2023: Inventories January 1, 2023 January 31, 2023 Direct Material $24,000 $23,000 Work in Process 18,000 15,000 Finished Goods 22,000 27,000 Additional Data:     Net Sales Revenue $325,000 Direct Labour Costs 40,000 Indirect Labour Costs 45,000 Sales Commissions 15,000 Administrative Expenses 18,000 Direct Materials Purchased during January 30,000 Depreciation, factory 10,000 Factory Maintenance and Supplies 8,000 Utilities, (80% factory, 20% office) 25,000 General Office Salaries 12,000     Required: Compute the amount of direct materials used in January. List and total the Manufacturing Overhead costs for the month of January. Compute the Cost of Goods Manufactured.   Hint: It may be helpful to prepare a Cost of Goods Manufactured statement in rough form but it is not required. You may use short forms in your answers for DM, DL etc.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Question 2.2                                                                                               

Lake Company recorded the following data for the month of January 2023:

Inventories

January 1, 2023

January 31, 2023

Direct Material

$24,000

$23,000

Work in Process

18,000

15,000

Finished Goods

22,000

27,000


Additional Data:

 

 

Net Sales Revenue

$325,000

Direct Labour Costs

40,000

Indirect Labour Costs

45,000

Sales Commissions

15,000

Administrative Expenses

18,000

Direct Materials Purchased during January

30,000

Depreciation, factory

10,000

Factory Maintenance and Supplies

8,000

Utilities, (80% factory, 20% office)

25,000

General Office Salaries

12,000

 

 

Required:

  1. Compute the amount of direct materials used in January.
  2. List and total the Manufacturing Overhead costs for the month of January.
  3. Compute the Cost of Goods Manufactured.

 

Hint: It may be helpful to prepare a Cost of Goods Manufactured statement in rough form but it is not required. You may use short forms in your answers for DM, DL etc.

 

 

 

 

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