I have a question that I am having difficulty with. The answers that I have alre

Question

I have a question that I am having difficulty with. The answers that I have already are correct. I just need the answers with zeros as the answer llisted: Information about Blue Line Product Company for the year ending December 31, 2017, follows: Sales equal $475,000. Direct materials used total 68,000. Manufacturing overhead is 150 percent of direct labor dollars. The beginning inventory of finished goods is 20 percent of the cost of goods sold. The ending inventory of finished goods is twice the beginning inventory. The gross profit is 20 percent of sales. There is no beginning or ending work-in-process. Prepare a statement of cost of goods manufactured for 2017. (Hint: Prepare an analysis of changes in Finished Goods Inventory.) Current manufacturing costs: Direct materials $Answer 68,000 Direct labor Answer 0 Manufacturing overhead Answer 0 $Answer 0 Beginning work-in-process Answer 0 Total costs in process Answer 0 Ending work-in-process Answer 0 Cost of goods manufactured $Answer 456,000 Analysis of Finished Goods Inventory: Finished goods, 1/1/17 $Answer 76,000 Cost of goods manufactured Answer 456,000 Total goods available for sale Answer 0 Finished goods, 12/31/17 Answer 152,000 Cost of goods sold $Answer 380,000

Explanation / Answer

what ever answers you have is correct.

Total cost of Goods manuafactured is $456,000

If you deduct direct materials from Total cost of Goods manuafactured, then we will get direct labor and Manufacturing overhead i.e. $388,000.

As Manufacturing overhead is 150 percent of direct labor dollars, If X is direct labor dollar, then Manufacturing overhead is X * 150%, So, X * 250% = $388,000

Direct Laor dollar X = $388,000/ 250% = $155,200

Manufacturing overhead is $155,200 x 150% = $232,800

There is no beginning or ending work-in-process

So,Beginning work-in-process Answer 0 Total costs in process Answer 0 Ending work-in-process Answer 0.

Blue Line Product Company Cost of goods manufactured For the year ended 12/31/17 Direct materials                68,000 Direct Labour            155,200 manufacturing overheads            232,800 Total Manfucature costs            456,000 Add : Begining Work In progess, Jan 1 0              456,000 Less :Ending Work In progess, Dec 31 0   Cost Goods Manufactured            456,000 Blue Line Product Company Income Statement For the year ended 12/31/17 Sales      475,000 Cost Goods Manufactured 456,000 Add : Begining Finshed Goods          76,000 Finished Goods Available for Sale 532,000 Less: Closing Finshed Goods      152,000 Cost of Goods Sold      380,000 Gross Profit $ 95,000

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