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HWch2 - $683,000 beg WIP inv $42,000 end WIP inv $35,000...

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Wendy Zeng Buad 250b Lin 9/3/2009 2-20 Product Cost Name of the cost variable cost fixed cost direct materials direct labor manufacturing overhead opportunity cost sunk cost forgone aerospace job salary x manufacture rent x x clay and glaze x x pottery makers x x local advertisement x worker commission x equipment rent x x legal fees x x sales office rent x phone bill x savings in bank forgone investment x
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2-21 1. Cost of goods manufactured Direct materials: beg raw materials inv $40,000 purch of raw material $290,000 end raw material $10,000 DM used $320,000 Direct Labor $93,000 MO $270,000 Tot Manufacturing cost
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Unformatted text preview: $683,000 beg WIP inv $42,000 end WIP inv $35,000 CGM $690,000 Cost of goods sold Beg Inv $50,000 CGM $690,000 Goods Avail for sale $740,000 End Inv $80,000 Cost of goods sold $660,000 2. average DM Average MO $320000/40000=$8 $270000/40000=$6.75 3. average DM Average MO $8 $270,000/50,000=5.4 Total DM Total MO $8*50,000=$400,000 $270,000 4. The different average cost for the MO is due to it being a fixed cost. If total cost is fixed then the average is variable depending on how many units are produced....
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