The following information is available for the HAPPY Corporation for 20X3:Materials inventory decreased $4,000 during 20X3.Materials inventory on December 31, 20X3, was 50% of materials inventory on January1, 20?3.3.Beginning work in process inventory was $140,000.Ending finished goods inventory was $65,000.Purchases of direct materials were $150,000.Direct materials used were 2.5 times the cost of direct labor.Manufacturing overhead was 50% of the cost of direct labor.Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $150,000 less than cost of goods sold. Compute:a) finished goods inventory on January 1, 2013b) work in process inventory on December 31, 2013c) direct labor incurredd) factory overhead incurrede) direct materials usedf) materials inventory on January 1, 2013g) materials inventory on December 31, 2013

COGS = COGM + Opening Finished Goods Inventory - Closing Finished Goods Inventory COGM = Total…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information is available for the HAPPY Corporation for 20X3:

Materials inventory decreased $4,000 during 20X3.
Materials inventory on December 31, 20X3, was 50% of materials inventory on January1, 20?3.

3.Beginning work in process inventory was $140,000.

Ending finished goods inventory was $65,000.
Purchases of direct materials were $150,000.
Direct materials used were 2.5 times the cost of direct labor.
Manufacturing overhead was 50% of the cost of direct labor.
Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $150,000 less than cost of goods sold.

Compute:

a) finished goods inventory on January 1, 2013
b) work in process inventory on December 31, 2013
c) direct labor incurred
d) factory overhead incurred
e) direct materials used
f) materials inventory on January 1, 2013
g) materials inventory on December 31, 2013

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