ntst ae Telated to the Time value of mny except? a. Interest C. Present value b.

Question

ntst ae Telated to the Time value of mny except? a. Interest C. Present value b. Cash flow d. Future value 1. Calculating Cost of Goods Manufactured: Three Fundamental Steps Sample Company requires its controller to prepare not only a year-end balance sheet and income statement, but also a statement of cost of goods manufactured During the year, the company purchased $361,920 of direct materials. The company's direct labor costs for the year were $99,085 (10,430 hours at $9.50 per hour); its indirect labor costs totaled $126,750 (20,280 hours at $6.25 per hour). Account balances for the year were as hour). Account balances for the year were as follows: Account 1. Plant Supervision 2. Factory Insurance 3. Utilities, Factory 4. Depreciation-Factor Building 5. Depreciation-Factory Equipment 6. FactorySecurity 7. FactoryRepair and Maintenance 8. SellingandAdministrative Expenses 9. MaterialsInventory.beginning 10. WorkinProcessInventory, beginning 11. FinishedGoodsInventory,beginning 12. Materialsinventory,ending 13. WorkinProcessInventory,ending 14. FinishedGoodsInventory,ending Balance $42,500 8,100 29,220 46,200 62,800 9,460 4,980 76,480 26,490 101,640 148.290 24,910 100,400 141,100 Required 1. Compute the cost of materials used during the year 2. Given the cost of materials used, compute the total manufacturing costs for the year 3. Given the total manufacturing costs for the year, compute the cost of goods manufactured during the year 4. If 13,397 units were manufactured during the year, what was the actual product unit cost? (Round your answer to two decimal places.)

Explanation / Answer

1 Cost of materials used: Materials inventory, Beginning 26490 Add: materials purchased 361920 388410 Less: Materials inventory, Ending 24910 Cost of materials used 363500 2 Total manufacturing cost Cost of materials used 363500 Direct labor costs 99085 Manufacturing overhead (Note:1) 340010 Total manufacturing cost 802595 Note:1- Manufacturing overhead Indirect labor 126750 Plant supervision 42500 Factory insurance 8100 Utilities,Factory 29220 Depreciation- factory building 46200 Depreciation- factory equipment 62800 Factory security 9460 Factory repair and maintenance 14980 Total manufacturing overhead 340010 Manufacturing overhead includes all costs which are directly related to the production.It does not include selling and administrative expenses 3 Cost of goods manufactured: Total manufacturing cost 802595 Add:Work in process inventory,beginning 101640 904235 Less:Work in process inventory,ending 100400 Cost of goods manufactured 803835 4 Actual product unit cost=Cost of goods manufactured/Units manufactured=803835/13397=$60 per unit

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