chapter 2 solution

Chapter 2 solution - CHAPTER 2 Basic Cost Management Concepts 2-38(30 MINUTES 1 2 Manufacturing overhead Indirect labour Building

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CHAPTER 2 Basic Cost Management Concepts 2-38 (30 MINUTES) 1. Manufacturing overhead: Indirect labour………………………………. $ 218,000 Building depreciation ($160,000 x 75%). . 120,000 Other factory costs………………………. . 688,000 Total……………………………………. .. $1,026,000 2. Cost of goods manufactured: Direct material: Raw-material inventory, Jan. 1……………… $ 31,600 Add: Purchases of raw material……………. . 350,000 Raw material available for use………………. $381,600 Deduct: Raw-material inventory, Dec. 31…. 36,400 Raw material used……………………………. . $ 345,200 Direct labour………………………………………. . 508,000 Manufacturing overhead…………………………. . 1,026,000 Total manufacturing costs………………………. . $1,879,200 Add: Work-in-process inventory, Jan. 1………. 71,400 Subtotal…………………………………………. . $1,950,600 Deduct: Work-in-process inventory, Dec. 31…. 124,200 Cost of goods manufactured……………………. . $1,826,400
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This note was uploaded on 02/18/2012 for the course BUSE 237 taught by Professor Sf during the Spring '12 term at Simon Fraser.

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Chapter 2 solution - CHAPTER 2 Basic Cost Management Concepts 2-38(30 MINUTES 1 2 Manufacturing overhead Indirect labour Building

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