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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