The following items are taken from the financial statements of Tri Manufacturing
ID: 2504221 • Letter: T
Question
The following items are taken from the financial statements of Tri Manufacturing Company. Determine the cost of raw materials used and total manufacturing costs. Lable each item.
Advertising $ 76,000
Direct Labor 920,000
Factory Overhead (80 percent of direct labor)
Office Salaries 51,000
Raw Materials Inventory, January 1 (beginning) 480,000
Raw Materials Inventory, December 31 (ending) 625,000
Raw Material's Purchases 1,470,000
Sales Salaries 143,000
answer in this format (total of 9 separate entries)
Cost of Raw Materials Used
Item Amount
1.
2. ________
3.
4. ________
5. dbl underscore total ________
Total Manufacturing cost
Item Amount
6.
7.
8. _______
9. dbl underscore total _______
Explanation / Answer
COST OF RAW MATERIALS
AMOUNT($)
Raw Materials Inventory, January 1 (beginning)
480000
ADD:- Raw Material's Purchases
1470000
LESS:- Raw Materials Inventory, December 31 (ending)
(625000)
COST OF RAW MATERIALS USED
1325000
TOTAL MANUFACTURING COST
AMOUNT($)
COST OF RAW MATERIALS USED
1325000
ADD:- Direct Labor
920,000
ADD:- Factory Overhead [80% 0F 920000]
736000
TOTAL MANUFACTURING COST
2981000
NOTE:-
Advertising & Office Salaries do not form part of the manufacturing cost
COST OF RAW MATERIALS
AMOUNT($)
Raw Materials Inventory, January 1 (beginning)
480000
ADD:- Raw Material's Purchases
1470000
LESS:- Raw Materials Inventory, December 31 (ending)
(625000)
COST OF RAW MATERIALS USED
1325000
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