1) Use the following information to compute the cost of goods manufactured. Assu
ID: 2438058 • Letter: 1
Question
1) Use the following information to compute the cost of goods manufactured. Assume that all raw materials used were traceable to specific units of product.
$35,750.
$35,150
$36,650.
$36,350.
$42,650
2) The standard materials cost to produce 1 unit of Product R is 8 pounds of material at a standard price of $42 per pound. In manufacturing 5,300 units, 40,200 pounds of material were used at a cost of $44 per pound. What is the direct materials quantity variance?
A) $80,400 favorable.
B) $92,400 favorable.
C) $80,400 unfavorable.
D) $92,400 unfavorable.
E) $12,000 favorable.
3) The standard materials cost to produce 1 unit of Product R is 9 pounds of material at a standard price of $54 per pound. In manufacturing 8,600 units, 75,500 pounds of material were used at a cost of $55 per pound. What is the direct materials price variance?
A) $102,600 unfavorable.
B) $75,500 favorable.
C) $75,500 unfavorable.
D) $102,600 favorable.
E) $27,100 favorable.
Beginning raw materials $ 6,700 Ending raw materials 5,200 Direct labor 13,450 Raw material purchases 8,600 Depreciation on factory equipment 7,700 Factory repairs and maintenance 4,500 Beginning finished goods inventory 11,400 Ending finished goods inventory 10,100 Beginning work in process inventory 6,900 Ending work in process inventory 7,500$35,750.
$35,150
$36,650.
$36,350.
$42,650
Explanation / Answer
1 Schedule of Cost of Goods Manufactured Direct materials: Raw materials inventory, beginning 6700 Add: Purchases of raw materials 8600 Total raw materials available 15300 Deduct: Raw materials inventory, ending 5200 Raw materials used in production 10100 Direct labor 13450 Manufacturing overhead applied to work in process inventory 12200 =7700+4500 Total manufacturing costs 35750 Add: Beginning work in process inventory 6900 42650 Deduct: Ending work in process inventory 7500 Cost of goods manufactured 35150 2 Direct materials quantity variance = 42*(40200-5300*8)= $92,400 favorable. 3 Direct materials price variance = 75500*(55-54) = $75,500 unfavorable.
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