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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