Work in process inventory accounts payable october 1

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Work in process inventory, October 31. $1,500 Accounts payable, October 1…………….. $3,000 Finished goods inventory, October 1…. 4,300 Direct materials used in October…………. 8,000 Direct labour in October……………… 3,000 Accounts payable, October 31…………… 5,20 0 Purchase of direct materials in October 9,000 Accounts receivable, October 31………… 6,50 0 Work in process inventory, October 1... 0 Direct materials inventory, Oct. 31………. 3,000 Revenues in October…………………..27,000 Manufacturing Overhead in October…….. 6,30 0 Accounts receivable, October 1………. 2,000 Gross profit in October……………….. 12,000 Required: Compute the following amounts i) Manufacturing costs ii) Cost of goods manufactured in October iii) Cost of goods sold in October iv) Beginning direct materials inventory v) Ending finished goods inventory - 4 -
4. The MTN Company has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. MTN has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation Cost Hours $100,000 3,500 61,o00 2,000 85,000 2,600 78,200 2,450 91,000 3,000 110,400 3,900 106,000 3,740 93,000 3,380 a) Calculate the variable cost per hour b) Calculate the total fixed costs c) Write the equation which measures the cost behaviour of the costs d) Calculate the operating costs for 3,750 hours. - 5 -

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