Given the following information, find a) cost of direct materials used, b) Cost

Question

Given the following information, find a) cost of direct materials used, b) Cost of goods sold, and c) total ACTUAL manufacturing overhead costs (if applicable)

sales revenue :4100

purchases of direct materials: 480

direct labor : 500

manufacturing overhead 670

operating expenses 750

beginning raw material inventory 300

ending raw material inventory 230

beginning work in process inventory 400

ending work in process inventory 490

beginning finished goods inventory 280

ending finished goods inventory 240

Explanation / Answer

a)cost of direct materials used= beg raw material inv+purchase of direct material-ending raw mater inv
=300+480-230=550
b)Cost of goods sold= beg finshed goods+cost of goods mfg-ending finsihed goods
cost of goods mfg=beg wip+total mfg costs-ending wip
total mfg costs=cost of direct materials used+direct labour+mfg overhead
=550+500+670=1720
cost of goods mfg=400+1720-490=1630
Cost of goods sold=280+1630-240=1670
c)total actual mfg overhead costs=670+750=1420

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.