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Hickory Furniture Factory has the following information for 2013 : Beginning raw

ID: 2379958 • Letter: H

Question

Hickory Furniture Factory has the following information for 2013:


Beginning raw materials inventory $16,500

Beginning work-in-process inventory $17,100

Beginning finished goods inventory $30,600


Ending raw materials inventory $12,000

Ending work-in-process inventory $18,900

Ending finished goods inventory $26,700


Total Manufacturing Costs for the period $94,000

Raw materials purchased $22,200

Depreciation on factory equipment $19,500

Depreciation on administrative building $21,750

Factory repairs and maintenance $ 9,900


1) Determine the cost of Direct Labor.


2) Referring to Hickory Furniture Factory above, determine the cost of goods manufactured for 2013.


3) Referring to Hickory Furniture Factory above, determine cost of goods sold for 2013.

Explanation / Answer

Particulars Amount Amount Opening Stock of Raw Material $16,500 Add: Purchase of Raw materials               $22,200 Less: Closing stock of Raw Materials           $12,000 Raw Materials Consumed             $26,700 Direct Wages (Labour)               (Balancing Figure) $37,900 Direct Charges                     Prime cost (1)                                                                 *** Add :- Factory Over Heads: Factory Repairs            $ 9,900 Factory Asset Depreciation $19,500 $29,400 Works cost Incurred                                                         $94,000 Add: Opening Stock of WIP                                       $17,100 Less: Closing Stock of WIP                                            $18,900 Works cost (2)                                                                 $92,200 Add:- Administration Over Heads:- Asset Depreciation                      $21,750 Cost of Goods Manufactured                                            $113,950 Add: Opening stock of Finished Goods                        $30,600 Less: Closing stock of Finished Goods                          $26,700 Cost of Goods Sold $117,850

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