The information below relates to Everest Manufacturing Company's operations for a recent month. (Assume that all raw materials are direct materials): Particulars Amount ($) Purchases of Raw Materials $98,000 Direct Labor Cost $135,000 Selling Costs (Total) $50,000 Administrative Costs (Total) $60,000 Manufacturing Overhead Costs (Total) $375,000 Raw Materials Inventory, Beginning $30,000 Work in Process Inventory, Beginning $40,000 Finished Goods Inventory, Beginning $50,000 Raw Materials Inventory, Ending $12,000 Work in Process Inventory, Ending $45,000 Finished Goods Inventory, Ending $20,000 Calculate Everest Manufacturing Company's cost of goods manufactured (COGM) for the month.

The information below relates to Everest Manufacturing Company's operations for a recent month. (Assume that all raw materials are direct materials): Particulars Amount ($) Purchases of Raw Materials $98,000 Direct Labor Cost $135,000 Selling Costs (Total) $50,000 Administrative Costs (Total) $60,000 Manufacturing Overhead Costs (Total) $375,000 Raw Materials Inventory, Beginning $30,000 Work in Process Inventory, Beginning $40,000 Finished Goods Inventory, Beginning $50,000 Raw Materials Inventory, Ending $12,000 Work in Process Inventory, Ending $45,000 Finished Goods Inventory, Ending $20,000 Calculate Everest Manufacturing Company's cost of goods manufactured (COGM) for the month.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter5: Process Cost Accounting—general Procedures

Section: Chapter Questions

Problem 7E: The records of Stone Inc. reflect the following data: Work in process, beginning of month4,000 units...

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The records of Burris Inc. reflect the following data: Work in process, beginning of month2,000 units one-half completed at a cost of 1,250 for materials, 675 for labor, and 950 for overhead. Production costs for the monthmaterials, 99,150; labor, 54,925; factory overhead, 75,050. Units completed and transferred to stock38,500. Work in process, end of month3,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost.
During March, the following costs were charged to the manufacturing department: $22,500 for materials; $45,625 for labor; and $50,000 for manufacturing overhead. The records show that 40,000 units were completed and transferred, while 10,000 remained in ending inventory. There were 45,000 equivalent units of material and 42,500 units of conversion costs. Using the weighted-average method, prepare the companys process cost summary for the month.
In October, the cost of materials transferred into the Rolling Department from the Casting Department of Kraus Steel Company is 3,000,000. The conversion cost for the period in the Rolling Department is 462,600 (275,000 factory overhead applied and 187,600 direct labor). The total cost transferred to Finished Goods for the period was 3,392,400. The Rolling Department had a beginning inventory of 163,800. a. Journalize for the Rolling Department (1) the cost of transferred-in materials, (2) the conversion costs, and (3) the costs transferred out to Finished Goods. b. Determine the balance of Work in ProcessRolling at the end of the period.
On December 1, Carmel Valley Production Inc. had a work in process inventory of 1,200 units that were complete as to materials and 50% complete as to labor and overhead. December 1 costs follow: During December the following transactions occurred: a. Purchased materials costing 50,000 on account. b. Placed direct materials costing 49,000 into production. c. Incurred production wages totaling 50,500. d. Incurred overhead costs for December: e. Applied overhead to work in process at a predetermined rate of 125% of direct labor cost. f. Completed and transferred 10,000 units to finished goods. (Hint: You should first compute equivalent units and unit costs. The unit cost should include applied, not actual, factory overhead.) Carmel Valley uses the weighted average cost method. The ending inventory of work in process consisted of 1,000 units that were completed as to materials and 25% complete as to labor and overhead. Required: Prepare the journal entries to record the above December transactions.
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