Module 2 Assignment

Module 2 Assignment - 2. All of the costs you have listed...

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2. All of the costs you have listed above, except one, would be differential costs between the alternatives of Staci producing pottery or staying with the aerospace company. Which cost is not differential? Explain. PROBLEM 2–21 Schedule of Cost of Goods Manufactured; Income Statement; Cost Behavior $20,000.00 $10,000.00
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1 Direct materials: $45,000.00 Direct labor Cost of goods manufactured Raw materials inventory, beginning (given) Add: Purchases of raw materials (given) Raw materials available for use Deduct: Raw materials inventory, ending (given) Raw materials used in production Manufacturing overhead (given) Total manufacturing costs (given) Add: Work in process inventory, beginning Deduct: Work in process inventory, ending (given) Finished goods inventory, beginning (given) Add: Cost of goods manufactured Goods available for sale (given) Deduct: Finished goods inventory, ending
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Cost of goods sold (given) * 2 Manufacturing overhead: $27 3 Manufacturing overhead: $27 4
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Superior Company Schedule of Cost of Goods Manufactured For the Year Ended December 31 $ 40,000 330,000 $320,000 93,000 * 683,000 * 725,000 $690,000 The cost of goods sold section of the income statement follows: $ 50,000 * 740,000 * 290,000 10,000 270,000 42,000 35,000 690,000 80,000
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$660,000 These items must be computed by working backwards up through the statements. Direct materials: $320,000 ÷ 40,000 units = $8.00 per unit.
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Module 2 Assignment - 2. All of the costs you have listed...

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