The following inventory information is available for Ricci Manufacturing Corpora
ID: 2411289 • Letter: T
Question
The following inventory information is available for Ricci Manufacturing Corporation for the year ended December 31, 2017:
Manufacturing Overhead = $6,800 + $8,000 + $9,200 + $9,000 = $33,000
Raw materials Work in process Finished goods $17,000 $19,000 9,000 14,000 8,000 $37,000 $41,000 11,000 Total In addition, the following transactions occurred in 2017: 1 Raw materials purchased, $75,000. 2. Incurred factory labor, $80,000, all is direct labor 3. Incurred the following overhead costs during the year: Utilities ?6,800 Depreciation on manufacturing machinery $8,000, Manufacturing machinery repairs $9,200 Factory insurance?9,000 4. Assigned $80,00D of factory labor to jobs. 5. Applied $36,000 of overhead to jobs. Your answer is partially correct. Try again. Using the grid below, enter the beginning balances, record the above transactions, and then enter the ending balances. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. Manufacturing Costs Work in Process Inventory Finished Goods Inventory Cost of Goods Sold Raw Materials Inventory Factory Labor Manufacturing Overhead Beginning balances 1. 2. 3. 4. 5. 3000 5000 3000 Ending balance 58000 170000 1000 Attempts: S of S used From an analysis of the occounts, compute the following: 1. Raw materials used. 2. Completed jobs transferred to finished goods. 3. Cost of goods sold. 4. Under- or overapplied overheadExplanation / Answer
a.
b. 1. Raw materials used = $ 17,000 + $ 75,000 - $ 19,000 = $ 73,000.
2. Completed jobs transferred to finished goods = $ 9,000 + $ 73,000 + $ 80,000 + $ 36,000 - $ 14,000 = $ 184,000.
3. Cost of goods sold = $ 11,000 + $ 184,000 - $ 8,000 = $ 187,000.
4. Overapplied overhead = $ 36,000 - $ 33,000 = $ 3,000.
Note:
Raw materials used = Beginning inventory + Purchases - Ending Inventory.
Completed jobs transferred to finished goods = Beginning WIP inventory + Manufacturing Costs - Ending WIP Inventory.
Cost of goods sold ( unadjusted ) = Beginning finished goods inventory + Completed jobs transferred from WIP - Ending finished goods inventory.
Cost of goods sold ( adjusted) = Cost of goods sold - Overapplied overhead.
Manufacturing Costs Work in Process Inventory Finished Goods Inventory Cost of Goods Sold Raw Materials Inventory Factory Labor Manufacturing Overhead Beginning Balances $ 17,000 $ 9,000 $ 11,000 1. 75,000 2. 80,000 3. 33,000 4. (80,000) 80,000 5. (36,000) 36,000 Ending Balance $ 19,000 $ 0 - $ 3,000 $ 14,000 $ 8,000 $ 0Related Questions
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