Lecture 2 - Case2-31(Solutions)

Lecture 2 - Case2-31(Solutions) - Case231(60minutes)

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Case 2-31  (60 minutes) The following cost items are needed before any schedules or statements  can be prepared: Direct labor cost: ¼ × Manufacturing overhead = Direct labor cost ¼ × $520,000 = $130,000 Materials used in production: Direct labor and direct materials. ........ $510,000 Less direct labor cost. .........................   130,000     Direct materials cost. .......................... $380,000 Cost of goods manufactured: Goods available for sale. ............................. $960,000 Less finished goods inventory, beginning. ...       90,000     Cost of goods manufactured. ....................... $870,000 Direct materials: Raw materials inventory, beginning. ..................... $   30,000 Add: Purchases of raw materials. .........................      420,000     Raw materials available for use. .......................... 450,000 Deduct: Raw materials inventory, ending. ............        
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/20/2010 for the course AD abc123 taught by Professor Cat during the Summer '09 term at City University of Hong Kong.

Page1 / 2

Lecture 2 - Case2-31(Solutions) - Case231(60minutes)

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online