Other information revealed in the accounting records of Best Car at the end of t

Question

Other information revealed in the accounting records of Best Car at the end of the period for product A are as follows: . Direct material per unit $100 product A . Direct labor per hour $12, It takes 20 hours to make one car . Total direct labor hours was 10,000 .Total manufacturing overhead was $4,609,000 for both A and B ($3,687,200 for A & $921,800 for B) . 10,000 units were produced for A and 8,000 units were produced for B . Cost per equivalent unit of conversion cost for A: $242.04 .Beginning work in process for A 10,000,000 .Beginning finished goods inventory 190,000 .Ending finished goods inventory: 150,000 . Ending raw materials inventory is 20,000 Advertising expense 20,000 Other operating expense 10,000 . . Sales revenue 12,000,000 Required: 9) Compute the total product cost for product. If there were 30,000 units in ending work in process which was 100% complete as to direct material and 80% complete as to conversion cost. 10) Compute the dollar amount of raw materials in ending work in process (10 points). 11) Compute the dollar amount of comversion cost in ending working in process roes 13) Compute the cost of goods manufactured schedule 14) Compute the cost of goods sold schedule 15) Compute the income statement 16) The current asset section of the balance sheet showing the total ending inventory

Explanation / Answer

As per policy, only four parts of a question are allowed to answer, so answering 9-12,

9) The total product cost for product or per unit cost = cost of Direct material + cost of conversion cost = $100 + $242.04 = $342.04

10) The dollar amount of raw materials in ending work in process = Total units * unit direct material cost = 30000 * 100 = $3,000,000

11) The dollar amount of conversion cost in ending work in process = Total units * unit conversion cost = 30000*80% * $242.04 = $5,808,960

12) The total cost remaining in ending work in process inventory = total cost of direct material + total cost of conversion costs = $3,000,000 + $5,808,960 = $8,808,960

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