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Unformatted text preview: E6-15 a.Raw Materials Inventory:ActivityGiven InformationSolutionBeginning balance $ 70,000 $ 70,000 + Purchases + ?+310,000Answer = Total available $ ? $380,000 −Raw materials used(300,000) (300,000) = Ending balance $ 80,000$ 80,000b.Current manufacturing costs: Direct materials $300,000 Direct labor ? Manufacturing Overhead (60% of direct labor) ?Total $681,000Conversion 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 = $238,125Answer c.Work-in-Process:ActivityGiven InformationSolutionBeginning 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$ 30,000d.Finished Goods Inventory:ActivityGiven InformationSolutionBeginning 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$110,000E6-16 Jackson Hole Manufacturing Company Statement of Cost of Goods Manufactured...
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This homework help was uploaded on 02/19/2008 for the course H ADM 221 taught by Professor Gpotter during the Spring '05 term at Cornell University (Engineering School).
- Spring '05