Chapter 3 solutions 28,30,42

Chapter 3 solutions 28,30,42 - DATA INPUT Crunchem Cereal...

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DATA INPUT Crunchem Cereal Company incurred costs Direct material used $275,000 Direct labor 120,000 Manufacturing overhead 252,000 Overhead rate 210% January 1 inventory balances End of Year Raw material $30,000 $33,000 Work in process 39,000 42,900 Finished goods 42,000 46,200 Inventory balances increase over previous year 10% SOLUTION 1. Schedule of cost of goods manufactured for 20x1 Direct material Raw-material inventory, January 1 $30,000 Add: Purchases of raw material 278,000 Raw material available for use $308,000 Deduct: Raw-material inventory, December 31 33,000 Raw material used $275,000 Direct labor 120,000 Manufacturing overhead 252,000 Total manufacturing costs $647,000 Add: Work-in-process inventory, January 1 39,000 Subtotal $686,000 Deduct: Work-in-process inventory, December 31 42,900 Cost of goods manufactured $643,100 2. Costs of goods sold Finished-goods inventory, January 1 $42,000 Add: Cost of goods manufactured 643,100 Cost of goods available for sale $685,100 Deduct: Finished-goods inventory, December 31 46,200 Cost of goods sold $638,900
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Chapter 3 solutions 28,30,42 - DATA INPUT Crunchem Cereal...

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