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Unformatted text preview: Decision Case 1 (p 938) 1 Power Switch Inventory Reconstruction Schedule (Amounts in thousands) Direct Materials Inventory Work in Process Inventory Finished Goods Inven Beginning inventory $113,000 Beginning inventory $229,000 Beginning inventory $476,000 + Direct materials used $446,000 + Direct labor $505,000 + Manufacturing overhead $245,000 $1,196,000 $589,000 $1,425,000- Ending inventory ($143,000)- Ending inventory ($239,000)- Ending inventory = Direct materials used $446,000 = Cost of goods manufactured $1,186,000 = Cost of goods sold Key Given in black + Purchase and freight in + cost of goods manufactured Total manufacturing costs incurred during the year = Direct materials available for use = Total manufacturing costs to account for = cost of goods available for sale Basic math in Blue Tranfered over for a category in Purple (a) Cost of good sold: Given was 1.7 mill in slaes and gross profit of 30% 1,700,000 x .30 = $510,000.00 Gross profit Profit minus the sales eqales the goods sold 1,700,000 - 510,000 = $1,190,000 Good were sold (b) Ending finished goods inventory:- Beinging inventory = $1,340,000 - $154,000 = $1,186,000 Cost of goods sold- cost of goods available for sale = $1,190,000 - $1,340,000 = ($150,000) (c) Cost of goods manufactured: (d) Ending work in process inventory:- Beginning inventory = $1,425,000- $229,000 = $1,196,000- = Direct materials used...
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This note was uploaded on 09/15/2011 for the course ACCOUNTING ACC 206 taught by Professor Emilyking's during the Spring '11 term at Ashford University.
- Spring '11