UNICAP_rules - 15,000 Total indirect costs 232,000 Assume...

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Topic: Inventory costing under the UNICAP rules The YAZ Corporation is a manufacturer. Assembly line employees and their supervisors worked 30,000 hours during the year. Administrative personnel worked a total of 10,000 hours. YAZ uses a percentage of direct labor hours to total labor hours to allocate indirect costs to inventory. YAZ incurred the following direct costs during the year: Cost Amount Materials 50,000 Direct labor + payroll taxes 240,000 Depreciation of assembly line equipment 20,000 Total direct costs 310,000 YAZ incurred the following indirect operating costs during the year: Cost Amount Advertising 30,000 Administrative wages + payroll taxes 150,000 Depreciation of office equipment 1,000 Rent 30,000 Utilities 6,000 Miscellaneous
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Unformatted text preview: 15,000 Total indirect costs 232,000 Assume that beginning inventory was $35,000 ($30,000 direct costs + $5,000 indirect costs) and the direct costs associated with ending inventory were $40,800. YAZ estimates the indirect costs in ending inventory by comparing the direct costs in ending inventory with the direct costs in the goods available for sale. Required: Compute YAZ’s inventoried costs and cost of goods sold for the year. Use the worksheet to follow the method prescribed under Reg. Sec. 1.263A-1(f)(3)(i). Cost of goods sold: Beginning inventory Direct costs 30,000 Indirect costs 5,000 35,000 Plus: Direct costs ? Plus: Sec. 263A costs ? Less: Ending inventory Direct costs 40,800 Indirect costs ? Cost of goods sold...
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