The following balances are known for A Company at the begining of the year: Direct materials inventory $ 24,000 Work-in-process inventory 9,000 Finished goods inventory 22,000 Manufacturing overhead control 33,000 Accounts payable 12,000 In the beginning of June, some of the current data were lost and you have been asked to help the finance department to reconstruct the data. After Reviewing old documents and interviewing employees you have generated the following additional information: The production superintendent’’s job cost sheets indicated that materials of $5,200 were included in the June 30 Work-in-Process Inventory as well as 300 direct labor-hours had been paid at $12.00 per hour for the jobs in process on June 30. The account of Accounts Payable is the only account for direct material purchases. The Clerk remembers clearly that the balance in the Accounts Payable on June 30 was $16,000. An analysis of cancelled checks indicated payments of $80,000 were made to suppliers during June. Payroll records indicate that 5,200 direct labor-hours were recorded for June. It was verified that there were no variations in pay rates among employees during June. Records at the warehouse indicate that the Finished Goods Inventory totaled $32,000 on June 30. Another record kept manually indicates that the Cost of Goods Sold in June totaled $168,000. The predetermined overhead rate was based on an estimated 60,000 direct labor-hours for the year and an estimated $360,000 in manufacturing overhead costs. Required: Compute the Cost of Goods Manufactured.
The following balances are known for A Company at the begining of the year:
|
|
|
|
|
|
Direct materials inventory |
$ |
24,000 |
|
|
Work-in-process inventory |
|
9,000 |
|
|
Finished goods inventory |
|
22,000 |
|
|
Manufacturing |
|
33,000 |
|
|
Accounts payable |
|
12,000 |
|
In the beginning of June, some of the current data were lost and you have been asked to help the finance department to reconstruct the data. After Reviewing old documents and interviewing employees you have generated the following additional information:
The production superintendent’’s
The account of Accounts Payable is the only account for direct material purchases. The Clerk remembers clearly that the balance in the Accounts Payable on June 30 was $16,000. An analysis of cancelled checks indicated payments of $80,000 were made to suppliers during June.
Payroll records indicate that 5,200 direct labor-hours were recorded for June. It was verified that there were no variations in pay rates among employees during June.
Records at the warehouse indicate that the Finished Goods Inventory totaled $32,000 on June 30.
Another record kept manually indicates that the Cost of Goods Sold in June totaled $168,000.
The predetermined overhead rate was based on an estimated 60,000 direct labor-hours for the year and an estimated $360,000 in
Required:
Compute the Cost of Goods Manufactured.
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