The financial recorde for the Lazer Manufacturing Company have been destroyed in

Question

The financial recorde for the Lazer Manufacturing Company have been destroyed in a flood. The following information has been obtained from a seperate set of books maintained by the cost accountant. The cost accountant now asks for your assistance in computing the missing amounts.

a. compute ending WIP

b. compute beginning finished goods inventory

c. compute direct materials purchased

Beginning Ending direct materials $         6,000 $      7,200 WIP $         8,200 a finished goods b $      5,200 other information: direct materials used $      20,000 direct labor $      14,200 overhead applied $         8,000 cost of goods manufactured $      40,000 cost of goods sold $      60,000

Explanation / Answer

Calculate following :

Total manufacturing cost = 20000+14200+8000 = 42200

a) Ending work in process = Beginning work in process+Total manufacturing cost-Cost of goods manufactured

= 8200+42200-40000

Ending work in process = 10400

b) Beginning finished goods inventory = Ending finished goods inventory+Cost of goods sold-Cost of goods manufactured

= 5200+60000-40000

Beginning finished goods inventory = 25200

c) Direct material purchase = Ending material+material use-beginning material

= 7200+20000-6000

Direct material purchase = 21200

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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