Solutions_ProblemSet_I

# Solutions_ProblemSet_I - SUGGESTED SOLUTIONS PROBLEM SET#I...

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1 SUGGESTED SOLUTIONS PROBLEM SET #I COST CLASSIFICATION Question 4 Cost of Goods Manufactured \$200,000 Cost of Goods Sold \$195,000 Question 5 i) Manufacturing Costs =\$17,300 ii) Cost of Goods Manufactured = \$15,800 iii) Cost of Goods Sold = \$15,000 iv) Beginning DM Inventory = \$2,000 v) Ending FG Inventory = \$5,100. Question 6 a) Direct material used = \$99,000 + \$250,000 = \$349,000 b) Direct labour cost = \$84,200 + \$66,400 = \$150,600 c) Factory overhead = \$(21,400 + 9,200 +55,600 +22,600+1,600+800) = \$111,200 d) Prime costs = \$349,000 + \$150,600 = \$499,600 e) Conversion cost = \$150,600 + \$111,200 = \$261,800 f) Production cost* = \$349,000 + \$150,600 + \$111,200 = \$610,800 * Production cost could also be calculated using other formulas. Question 7 i) Using Statement Method Beginning Work in Process Inventory \$0 Add: Direct Material Used: Beginning Direct Material Inventory \$13,500 Purchase of Direct Material 31,000 Direct Material Available For Use 44,500 Ending Direct Material Inventory (9,000) Direct Material Used \$35,500

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2 Direct Labour 18,000 Manufacturing Overhead: Plant Janitorial Services 1,250 Utilities for Plant 4,500 Rent on Plant 9,000 14,750 Total Manufacturing Costs Incurred 68,250 Total Manufacturing Costs to Account For
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Solutions_ProblemSet_I - SUGGESTED SOLUTIONS PROBLEM SET#I...

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