The slider Company had no beginning inventories. The following transactions occu

Question

The slider Company had no beginning inventories. The following transactions occurred in 1999s (000s):

Purchase direct materials $350
Direct Materials used 300
Acquired direct labot 160
acuired factory overhead 200
completed all goods that were started ?
cost of goods sold (1/2 of goods completed were sold) ?

Required:
1) what are the ending balances of diret materials, work -in process and finished good inventories?
2)Suppose goods were still in proess that cost $100,000. Half the goods completed were sold. What are the balances of all the acccounts in the ending balance sheet?

Explanation / Answer

Ending balance of direct material = 350-300 = 50

Since all the goods got completed so there will not be any work in process.

Cost of goods manufactured = 300+160+200= 660

Since half the goods got sold so finished goods stock is= 660/2 = 330 ('000)

2) Work in process = 100,000

Cost of completed goods = 660,000 - 100,000 = 560,000

Since half of completed goods for sold so ending balance of finished goods is = 560,000/2= 280,000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

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