{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

GNB+13e+Solutions+Ch+02+Case

GNB+13e+Solutions+Ch+02+Case - C2-26 Salter Company Data...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
C2-26 Salter Company Data: Raw materials, January 1 $18,000 Work in process, January 1 $65,000 Finished goods, January 1 $45,000 Sales $1,200,000 Manufacturing overhead 70% of conversion costs Gross margin rate 40% of sales Direct labor cost $180,000 Direct labor plus Direct materials cost $410,000 Cost of goods available for sale $810,000 Purchases of raw materials $290,000 1. Calculate Ending Raw Materials Inventory Raw materials, beginning $18,000 Add: Purchases of raw materials $290,000 Raw materials available for use $308,000 Direct materials cost $230,000 (see below) Raw materials, ending $78,000 Direct labor plus Direct materials cost $410,000 (given) Less: Direct labor cost $180,000 (given) Direct materials cost $230,000 MOH = 0.7 x Conversion Costs Conversion Costs = DL + MOH MOH = 0.70(180K + MOH) MOH = 126K + 0.7MOH 0.3MOH = 126K MOH = 420K 2. Calculate Ending Work In Process Inventory
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}