1. Direct Marterials used in production. 2. Assume direct materials ised in prod
ID: 2330595 • Letter: 1
Question
1. Direct Marterials used in production.2. Assume direct materials ised in production is 147. Calculate total Manufacturinf costs for the period.
3. Assume total manufacturing costs for the period is 36. Calculate costs of goods manufactured.
4. Assume cost of goods manufactured is 400. calculate cost of goods sold.
me statement calculations- Requires Respondus LockDown Browser Time Left.0:29-25 Madison Barlage: Attempt 1 OHS Enterprises started business in 2015 producing custom items for the home. 2016 was their first full year of operations. The following items were gathered from their accounting records for 2016: Accounts payable 2 Finished goods inventory- 1/1/2016 26 Accounts receivable 30 Finished goods inventory 187 Indirect materials used 63 Insurance- admin offices 28 Other admin. expenses 49 18 25 17 Accumulated depreciation Cash Common stock Depreciation- admin. offices 13 210 Mortgage payable 72 115 Depreciation factory machinery Direct materials inventory 1/1/2016 Direct materials inventory 12/31/2016 Direct material purchases Dividends Other factory overhead Property, plant and equipment Property taxes-factory 90 400 75 140 800 123 Retained earnings 36 Sales Work in process inventory 31 Factory labor 57 1/1/2016 Work in process inventory43 Factory utilities 12/31/2016 Calculate each of the following. USE ONLY WHOLE DOLLAR AMOUNTS. DO NOT USE COMMAS, DOLLAR SIGNS, PERIODS, ETC 1. Direct materials used in production 2. Assume direct materials used in production is 147. Calculate total manufacturing costs for the period. 20 ODD F2 FI
Explanation / Answer
1. Calculation of direct materials used in production is as follows: Direct materials inventory 1/1/2016 18 Add: Direct material purchases 123 Direct materials available for use 141 Less: Indirect materials used 8 Less: Direct materials inventory 12/31/2016 25 Direct materials used in production 108 2. Calculation of total manufacturing costs for the period is as follows: Direct materials used in production 147 Add: Factory labor 57 Add: Factory overhead Depreciation factory machinery 49 Factory utilities 22 Indirect materials used 8 Other factory overhead 90 Property taxes - factory 75 Total factory overhead 244 Total manufacturing costs for the period 448 3. Calculation of cost of goods manufactured is as follows: Total manufacturing costs for the period 362 Add: Work in process inventory - 1/1/2016 31 Less: Work in process inventory - 12/31/2016 43 Cost of goods manufactured 350 4. Calculation of cost of goods sold is as follows: Cost of goods manufactured 400 Add: Finished goods inventory - 1/1/2016 26 Less: Finished goods inventory - 12/31/2016 17 Cost of goods sold 409 5. Calculation of net income is as follows: Sales 800 Less: Cost of goods sold 400 Gross margin 400 Less: Expenses Depreciation - admin. Offices 28 Insurance - admin. Offices 13 Other admin. Expenses 115 Total expenses 156 Net income 244
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