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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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