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As of December 31, 2017, Stand Still Industries had $4,000 of raw materials inve

ID: 2512337 • Letter: A

Question

As of December 31, 2017, Stand Still Industries had $4,000 of raw materials inventory. At the beginning of 2017, there was $4,500 of materials on hand. During the year, the company purchased $400,000 of materials; it paid for only $300,500. How much inventory was requisitioned for use on jobs during 2017?
If there were 80,000 pounds of raw materials on hand on January 1, 150,000 pounds are desired for inventory at January 31, and 450,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

Worth Company reported the following year-end information: Beginning work in process inventory, $200,000; cost of goods manufactured, $875,000; beginning finished goods inventory, $275,000; ending work in process inventory, $230,000; and ending finished goods inventory, $290,000. Worth Company's cost of goods sold for the year is?

Ben Godon Inc. manufactures 2 products, wheels and seats. The company has estimated its overhead in the assembly department to be $690,000. The company produces 400,000 wheels and 700,000 seats each year. Each wheel uses 2 parts, and each seat uses 3 parts. How much of the assembly overhead should be allocated to wheels?

As of December 31, 2017, Stand Still Industries had $4,000 of raw materials inventory. At the beginning of 2017, there was $4,500 of materials on hand. During the year, the company purchased $400,000 of materials; it paid for only $300,500. How much inventory was requisitioned for use on jobs during 2017?
If there were 80,000 pounds of raw materials on hand on January 1, 150,000 pounds are desired for inventory at January 31, and 450,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

Worth Company reported the following year-end information: Beginning work in process inventory, $200,000; cost of goods manufactured, $875,000; beginning finished goods inventory, $275,000; ending work in process inventory, $230,000; and ending finished goods inventory, $290,000. Worth Company's cost of goods sold for the year is?

Ben Godon Inc. manufactures 2 products, wheels and seats. The company has estimated its overhead in the assembly department to be $690,000. The company produces 400,000 wheels and 700,000 seats each year. Each wheel uses 2 parts, and each seat uses 3 parts. How much of the assembly overhead should be allocated to wheels?


If there were 80,000 pounds of raw materials on hand on January 1, 150,000 pounds are desired for inventory at January 31, and 450,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

Worth Company reported the following year-end information: Beginning work in process inventory, $200,000; cost of goods manufactured, $875,000; beginning finished goods inventory, $275,000; ending work in process inventory, $230,000; and ending finished goods inventory, $290,000. Worth Company's cost of goods sold for the year is?

Ben Godon Inc. manufactures 2 products, wheels and seats. The company has estimated its overhead in the assembly department to be $690,000. The company produces 400,000 wheels and 700,000 seats each year. Each wheel uses 2 parts, and each seat uses 3 parts. How much of the assembly overhead should be allocated to wheels?

Explanation / Answer

1.Stand still industries

Closing inventory=$4,000

Opening inventory=$4,500

Purchase=$400,000

Inventory consumed during 2017= Opening inventory + purchase - closing inventory

=4,500+400,000-4000

Inventory consumed during 2017 = $ 400,500

2. Opening Inventory= 80,000 pounds

Desired closing inventory=150,000 pounds

Inventory consumption=450,000 pounds

Inventory consumed January= Opening inventory + purchase - closing inventory

450,000=80,000+purchase-150,000

Purchase of raw materials= $520,000

3.Worth company:

Opening WIP= $200,000

Closing WIP= $200,000

Cost of goods manufactured=$875,000

Opening Finished goods inventory=$275,000

Closing Finished goods inventory=$290,000

Cost of goods sold=Opening FG inventory + cost of goods manufactured - closing inventory

Cost of goods sold=275,000+875,000-290,000

Cost of goods sold=$860,000

4. Ben Godon Inc

Assembly department overhead = $690,000

Wheel=400,000*2 parts= 800,000

Seat=700,000*3=2,100,000

Allocation of assembly overhead

Wheel=$690,000*800,000/(800,000+2,100,000)

=$190,345

Seat= $690,000*2,100,000/(800,000+2,100,000)

=$499,655