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1. (a)$176,000 (b)$172,000 (c)$152,000 (d)$224,000 2. (a) $14,000 (b) $15,000 (c

ID: 2339431 • Letter: 1

Question

1.

(a)$176,000

(b)$172,000

(c)$152,000

(d)$224,000

2.

(a) $14,000

(b) $15,000

(c) $18,000

(d) $24,000

Durphey Corporation has provided the following data concerning last month's operations Purchases of raw materials $25,000 Indirect materials included in manufacturing overhead4,000 Direct labor cost $58,000 $99,000 Manufacturing overhead applied to Work in Process Beginning Ending $17,000 Raw materials inventory$11,000 How much is the total manufacturing cost for the month on the Schedule of Cost of Goods Manufactured?

Explanation / Answer

a. Answer is a

Calculation

Note: Indirect material shall not be considered in calculating manufacturing cost since indirect material expense is already included in the manufatuing overhead.

Working note 1 -

Beginning Raw material inventory balance = $11,000

Add: Purchases during the month = $25,000

Total raw material inventory available for consumption = $11,000 + $25,000 = $36,000

Less: Ending raw material inventory balance = $17,000

Raw material inventory consumed = $36,000 - $17,000 = $19,000

Amount Direct material consumed [Working Note -1] $19,000 Add: Direct labor cost $58,000 Add: Manufacturing overhead applied to Work in Process $99,000 Total Manufacturing Cost for the month $176,000