Names: Hetzel.ACTY2110.TACh2 Team Activity-Chapter 2 The accounting information

Question

Names: Hetzel.ACTY2110.TACh2 Team Activity-Chapter 2 The accounting information of Leo, Inc. in May is as follows. S 2,088 225,000 22,320 380 595,200 Total current manufacturing costs612,320 S 2,900 Ending Raw Materials Beg. Raw Materials Raw materials purchased 116,488 Manufacturing overhead applied Ending Work-in-Process Ending Finished Goods 6,110 Beginning Finished Goods 38.770 Indirect materials used f Answer the following questions: 1. Calculate the cost of direct materials put into production during May. 2. Calculate the direct labor costs incurred for the month of May 3. Calculate the cost of goods manufactured for the month of May 4. Calculate beginning work-in-process for the month of May.

Explanation / Answer

1) Cost of Direct Materials :-

= Raw Materials Purchased + Beg. Raw Materials - Ending Raw Materials

= $116488 + $2900 - $2088

= $117300

2) Direct Labor Cost :-

= Total Current Manufacturing Costs - Direct Raw Materials - Manufacturing Overhead Applied

= $612320 - $117300 - $225000

= $270020

3). Cost of Goods Manufactured :-

= Unadjested Cost of Goods Sold + Ending Finished Goods - Beg. Finished Goods

= $595200 + $38770 - $22320

= $611650

4) Beginning Work in Process :-

= Cost of Goods Manufactured + Ending Work in Process - Total Current Manufacturing Cost

= $611650 + $6110 - $612320

= $5440

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