12. Caspar Co. had the following balances in 2017: Beginning Raw Materials Inven
ID: 2334409 • Letter: 1
Question
12. Caspar Co. had the following balances in 2017: Beginning Raw Materials Inventory Ending Raw Materials Inventory Purchases of Raw Materials Beginning Work in Process Inventory Ending Work in Process Inventory Beginning Finished Goods Inventory Ending Finished Goods Inventory Direct Labor Overhead (including $2,000 of Indirect Materials) $ 5,000 7,000 $60,000 $15,000 $18,000 3,000 8,000 $45,000 35,000 Calculate the following: Raw Materials Available for Use: Direct Materials Used: Total Manufacturing Costs: Cost of Goods Manufactured: Cost of Goods Sold: a. b. d. e.Explanation / Answer
Answer to Part a.
Raw Materials available for use = Beginning Raw Materials Inventory + Purchase of Raw Materials
Raw Materials available for use = $5,000 + $60,000
Raw Materials available for use = $65,000
Answer to Part b.
Direct Materials used = Raw Materials available for use – Ending Raw Materials Inventory
Direct Materials used = $65,000 - $7,000
Direct Materials used = $58,000
Answer to Part c.
Total Manufacturing Costs = Direct Materials used + Direct labor + Overhead + Beginning Work in process Inventory
Total Manufacturing Costs = $58,000 + $45,000 + $35,000 + $15,000
Total Manufacturing Costs = $153,000
Answer to Part d.
Cost of Goods Manufactured = Total Manufacturing Costs - Ending Work in Process Inventory
Cost of Goods Manufactured = $153,000 - $18,000
Cost of Goods Manufactured = $135,000
Answer to Part e.
Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured – Ending Finished Goods Inventory
Cost of Goods Sold = $3,000 + $135,000 - $8,000
Cost of Goods Sold = $130,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.