l. Chapter 18 Question--Clark Corporation had the following manufacturing cost i
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Question
l. Chapter 18 Question--Clark Corporation had the following manufacturing cost information: March 1 March 31 $280,000 $241,000 $190,000 Direct Labor Materials Purchased in March Factory Overhead Costs in March $145,00 Materials Work in Process $215,000 Finished Goods $162,000 Show Calculations and Results for the Following: 1. Direct Materials Used: 2. Total Manufacturing Costs Incurred 3. Total Manufacturing Costs: 4. Cost of Goods Manufactured: 5. Cost of Goods Sold: 570,00 $605,00 $310,000 40,000 30,000 20,000 10,000 Il. Interpret the graph. Units are on X axis, dollars on Y 1. Identify line a 2. Identify line b 3. Identify line c 4. What is the breakeven point in units? 5. What is the breakeven point in dollars? 500 1000 1500 2000 2500 Note: items 4 and 5 are are integers.Explanation / Answer
Answer to Question I.
Part 1.
Direct Materials Used = Beginning Materials + Materials purchased – Ending Materials
Direct Materials Used = $310,000 + $605,000 - $280,000
Direct Materials Used = $635,000
Part 2.
Total Manufacturing Cost Incurred = Direct Materials used + Direct Labor + Factory Overhead Costs
Total Manufacturing Cost Incurred = $635,000 + $570,000 + $145,000
Total Manufacturing Cost Incurred = $1,350,000
Part 3.
Total Manufacturing Costs = Total Manufacturing Cost Incurred + Work in Process, Beginning
Total Manufacturing Costs = $1,350,000 + $215,000
Total Manufacturing Costs = $1,565,000
Part 4.
Cost of Goods Manufactured = Total Manufacturing Costs - Work in Process, Ending
Cost of Goods Manufactured = $1,565,000 - $241,000
Cost of Goods Manufactured = $1,324,000
Part 5.
Cost of Goods Sold = Cost of Goods Manufactured + Finished Goods, Beginning – Finished Goods, Ending
Cost of Goods Sold = $1,324,000 + $162,000 - $190,000
Cost of Goods Sold = $1,296,000
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