Ac505 Quiz 1

Cost of Goods Manufactured:

Direct Materials:

Beg. raw materials inventory 28,000

Add: Purchases of raw materials 56,000

Raw mat. avail. for use 84,000

Deduct: Ending raw materials inventory 29,000

Raw materials used in production 55,000

Direct labor 87,000

Manufacturing overhead 51,000

Total manufacturing cost 193,000

Add: Beg WIP inventory 16,000

Deduct: Ending WIP inventory 14,000

Cost of goods manufactured: 195,000

Cost of Goods Sold

Beg. FG inventory 42,000

Add: Cost of goods manufactured 195,000

Goods available for sale 237,000

Deduct: Ending FG inventory 54,000

Unadjusted cost of goods sold 183,000

Deduct: overapplied overhead 4,000

Adjusted cost of goods sold $179,000

a. raw materials inventory $35,000

accounts payable $35,000

b. work in process $34,500

raw materials inventory $34,500

c. work in process $39,000

manufacturing overhead $13,000

salaries expense $20,000

salaries and wages payable $72,000

d. manufacturing overhead $12,000

accumulated depreciation $12,000

e. manufacturing overhead $7,500

utility accounts payable $7,500

f. work in progess $69,000

manufacturing overhead $69,000

g. advertising expense $40,000

advertising account payable $40,000

h. finished good inventory $160,000

work in process $160,000

i. cost of goods sold $158,000

finished goods inventory $158,000

i. Equivalent unit Materials:

units completed and transferred out: 450,000

work in process (100,000+500,000-450,000): 150,000

Equivalent Units of production materials: 600,000

Equivalent unit Conversion:

units completed and transferred out: 450,000

work in process (150,000 * 50%): 75,000

Equivalent units of production conversion: 525,000

Cost per equivalent unit Materials:

starting costs:...