Discussion+2+key - A202 Spring 2010 Discussion 2 KEY In...

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A202 Spring 2010 Discussion 2 KEY In this class, you will: Determine a product’s value chain Review cost flows; work problem; discuss Review cost allocations; work problem; discuss Part I: Computing unit product cost, cost of goods manufactured, cost of goods sold Hines Company produces one product, high-quality, plain white T-shirts. During October, Hines recorded the following information: Units produced 20,000 Units in beginning finished goods inventory 3,200 Beginning finished goods $12,000 Units sold 18,000 Cost of goods sold $67,500 Beginning inventory, cotton fabric $10,000 Production workers’ wages $30,000 Direct labor Cotton fabric purchased $4,000 Cotton fabric used $5,000 Direct materials Beginning work in process $0 Factory utilities, rent, taxes $14,000 Overhead Hines executives’ salaries $17,000 Period Advertising $11,000 Period Sales commissions $19,000 Period Production supervisors $8,000 Overhead Sales representatives’ salaries $9,000 Period Materials ordering/receiving, storage, moving $6,000 Overhead Legal costs $2,000 Period Other general and administrative $5,000 Period Factory equipment, maintenance, and security $12,000 Overhead Selling price (per unit) $8 Required: 1a. Prepare a cost flow diagram for October, showing the three inventory accounts. Be sure to include any missing information. (Hint: you might first identify all of the product costs.) Assume all units worked on in October were completed. (Missing amounts are highlighted in yellow.)
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This note was uploaded on 02/02/2010 for the course BUS-A 202 taught by Professor Keenan during the Spring '08 term at Indiana.

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Discussion+2+key - A202 Spring 2010 Discussion 2 KEY In...

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