Chapter 2 Solutions to Cornerstone Exercises

Chapter 2 Solutions to Cornerstone Exercises - CORNERSTONE...

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CORNERSTONE EXERCISES Cornerstone Exercise 2–19 Direct materials $ 24,000 Direct labor 40,000 Manufacturing overhead 56,000 Total product cost $120,000 Per-unit product cost = 4,000 $120,000 = $30 Therefore, one hockey stick costs $30 to produce. Cornerstone Exercise 2–20 Direct materials $24,000 Direct labor 40,000 Total prime cost $64,000 Per-unit prime cost = 4,000 $64,000 = $16 Direct labor $40,000 Manufacturing overhead 56,000 Total conversion cost $96,000 Per-unit conversion cost = 4,000 $96,000 = $24 Cornerstone Exercise 2–21 Materials inventory, June 1 $ 42,000 Purchases 180,000 Materials inventory, June 31 (51,000 ) Direct materials used in production $171,000
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Cornerstone Exercise 2–22 Direct materials* $171,000 Direct labor 165,000 Manufacturing overhead 215,000 Total manufacturing cost for June $551,000 WIP, June 1 60,000 WIP, June 30 (71,000 ) Cost of Goods Manufactured $540,000 *Direct materials = $42,000 + $180,000 – $51,000 = $171,000 [This was calculated in Cornerstone Exercise 2–21.] Per-unit cost of goods manufactured = units 18,000 $540,000 = $30 Cornerstone Exercise 2–23 Slapshot Company Cost of Goods Sold Statement For the Month of June Cost of goods manufactured ......................................................... $ 540,000 Finished goods inventory, June 1 .................................................
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