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221_Solutions_Chap_6_Fa_05

221_Solutions_Chap_6_Fa_05 - E6-15 a Raw Materials...

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E6-15 a. Raw Materials Inventory: Activity Given Information Solution Beginning balance $ 70,000 $ 70,000 + Purchases + ? +310,000 Answer = Total available $ ? $380,000 Raw materials used (300,000 ) (300,000 ) = Ending balance $ 80,000 $ 80,000 b. Current manufacturing costs: Direct materials $300,000 Direct labor ? Manufacturing Overhead (60% of direct labor) ? Total $681,000 Conversion costs = $681,000 $300,000 = $381,000 Conversion costs = Direct labor + Manufacturing overhead = Direct labor + 0.6 Direct labor = 1.6 Direct labor Direct labor = $381,000/1.6 = $238,125 Answer c. Work-in-Process: Activity Given Information Solution Beginning balance $ 85,000 $ 85,000 + Current mfg. costs +681,000 +681,000 = Total costs in process $ ? $766,000 Cost of goods mfg. ? (736,000 ) Answer = Ending balance $ 30,000 $ 30,000 d. Finished Goods Inventory: Activity Given Information Solution Beginning balance $ 90,000 $ 90,000 + Cost of goods mfg. + ? +736,000 = Cost of goods available for sale $826,000 $826,000 Cost of goods sold ? (716,000 ) Answer = Ending balance $110,000 $110,000
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