The following information was taken from the accounting records of Everest Machinery Corp.: • • • • • Work in process inventory, beginning of the year = $55,000 Cost of direct materials used = $350,000 Direct labor cost applied to production = $180,000 Overhead assigned to production = $420,000 Cost of finished goods manufactured = $950,000 What is the amount of work in process inventory on hand at the end of the year?

The following information was taken from the accounting records of Everest Machinery Corp.: • • • • • Work in process inventory, beginning of the year = $55,000 Cost of direct materials used = $350,000 Direct labor cost applied to production = $180,000 Overhead assigned to production = $420,000 Cost of finished goods manufactured = $950,000 What is the amount of work in process inventory on hand at the end of 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 27E: Selected information concerning the operations of a company for the year ended December 31 is as...

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During the year, a company purchased raw materials of $77,321 and incurred direct labor costs of $125,900. Overhead Is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
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The following data summarize the operations during the year. Prepare a journal entry for each transaction. A. Purchase of raw materials on account: $1,500 B. Raw materials used by Job 1: $400 C. Raw materials used as indirect materials: $50 D. Direct labor for Job 1: $200 E. Indirect labor Incurred for Job 1: $30 F. Factory utilities Incurred on account: $500 G. Adjusting entry for factory depreciation: $200 H. Manufacturing overhead applied as percent of direct labor: 100% I. Job 1 is transferred to finished goods J. Job 1 is sold: $1,000 K. Manufacturing overhead is under applied: $100
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