The Yellville Company provided you with the following information for the fiscal

Question

The Yellville Company provided you with the following information for the fiscal year ended December 31. Work-in-process inventory, 12/31 $ 115,800 Finished goods inventory, 1/1 614,800 Direct labor costs incurred 2,008,600 Manufacturing overhead costs 5,368,800 Direct materials inventory, 1/1 501,600 Finished goods inventory, 12/31 1,022,000 Direct materials purchased 3,500,400 Work-in-process inventory, 1/1 202,000 Direct materials inventory, 12/31 338,800 Required: (a) Compute the total manufacturing costs incurred during the year. (b) Compute the total work-in-process during the year. (c) Compute the cost of goods manufactured during the year. (d) Compute the cost of goods sold during the year. (e) Compute the total prime costs for the year. (f) Compute the total conversion costs for the year.

Explanation / Answer

A) Total Mfg cost

Material cost = opening + purchase - closing = 501600 + 3500400 - 338800 = 3663200

Labour cost = 2008600

Mfg oh = 5368800

Mfg cost = 3663200 + 2008600 + 5368800 = 11040600

B) WIP during the year = 202000 +3663200 - 115800 = 3749400

C) Cost of goods mfg = Material + labour + OH cost

= 3749400 + 2008600 + 3500400 = 9258400  

D) Cost of goods sold =  ( 614800 + 9258400 - 1022000) = 8851200

E) Prime cost = Material + labour = 3749400 + 2008600 = 5758000

F) Conversion cost = Labour + Overhead = 2008600 + 5368800 = 7377400

D)

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