MERIWELL COMPANY Finished goods inventory, beginning $ 20,000 Finished goods inv
ID: 2374148 • Letter: M
Question
MERIWELL COMPANY
Finished goods inventory, beginning
$ 20,000
Finished goods inventory, ending
$ 40,000
Administrative expenses
$ 110,000
Manufacturing overhead:
Variable
$ 15,000
Fixed
$ 90,000
Purchases of raw materials
$ 125,000
Raw materials inventory, beginning
$ 9,000
Raw materials inventory, ending
$ 6,000
Direct labor
$ 70,000
Work in process inventory, beginning
$ 17,000
Work in process inventory, ending
$ 30,000
Sales
$ 500,000
Selling expenses
$ 80,000
Problem 1:
Meriwell Company reports the following information for the year ended December 31, 2010:
What were the following amounts for 2010?
1. Cost of goods Manufactured
2. Cost of goods sold
3. Net Income
MERIWELL COMPANY
Finished goods inventory, beginning
$ 20,000
Finished goods inventory, ending
$ 40,000
Administrative expenses
$ 110,000
Manufacturing overhead:
Variable
$ 15,000
Fixed
$ 90,000
Purchases of raw materials
$ 125,000
Raw materials inventory, beginning
$ 9,000
Raw materials inventory, ending
$ 6,000
Direct labor
$ 70,000
Work in process inventory, beginning
$ 17,000
Work in process inventory, ending
$ 30,000
Sales
$ 500,000
Selling expenses
$ 80,000
Explanation / Answer
Raw materials inventory, beginning 9000
Purchases of raw materials 125000
Raw materials inventory, ending (6000)
Cost of raw material consumed 128000
Direct labor 70000
Manufacturing overhead:
Variable 15000
Fixed 90,000
Works Cost incurred 303000
Add:- Work in process inventory, beginning 17000
Less:- Work in process inventory, end (30000)
Works Cost 290000
Administrative expenses 110000
cost of goods manufactured 400000
Add:- Finished goods inventory, beginning 20000
Less:- Finished goods inventory, end (40000)
Cost of goods Sold 380000
Selling expenses 80000
Cost of sales 460000
profit 40000
Sales 500000
Manufacturing overhead:
Variable 15000
Fixed 90,000
Works Cost incurred 303000
Add:- Work in process inventory, beginning 17000
Less:- Work in process inventory, end (30000)
Works Cost 290000
Administrative expenses 110000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.