9.. Cerrone Inc. has provided the following data for the month of July. The bala

ID: 2424320 • Letter: 9

Question

9.. Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $54,000 and at the end of the month was $40,400. The cost of goods manufactured for the month was $269,000. The actual manufacturing overhead cost incurred was $145,100 and the manufacturing overhead cost applied to Work in Process was $133,000. The adjusted cost of goods sold that would appear on the income statement for July is: $270,500 $282,600 $294,700 $255,400 10.. Meyers Corporation had the following inventory balances at the beginning and end of November: November 1 November 30 Raw Materials $ 40,000 $ 18,000 Finished Goods $ 110,000 $ 75,000 Work in Process $ 16,000 $ 25,000 During November, $85,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $7 per direct labor-hour, and it paid its direct labor workers $9 per hour. A total of 500 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $10,000 of direct materials cost. The Corporation incurred $60,000 of actual manufacturing overhead cost during the month and applied $55,000 in manufacturing overhead cost. 10. Required information The direct materials cost in the November 1 Work in Process inventory account totaled: $12,500 $8,000 $11,500 $4,500 11... The actual direct labor-hours worked during November totaled: (Round your answers to the nearest dollar.) 6,667 hours 8,571 hours 6,111 hours 7,857 hours 12. On August 1, Shead Corporation had $30,400 of raw materials on hand. During the month, the company purchased an additional $80,000 of raw materials. During August, $85,100 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The credits to the Raw Materials account for the month of August total: $85,100 $80,000 $110,400 $81,100 13...On August 1, Shead Corporation had $30,400 of raw materials on hand. During the month, the company purchased an additional $80,000 of raw materials. During August, $85,100 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The credits to the Raw Materials account for the month of August total: $85,100 $80,000 $110,400 $81,100

Explanation / Answer

Calculation of adjusted cost of goods sold:

Cost of goods manufactured for the month

$ 269,000

Add: Balance in the Finished Goods inventory account at the beginning of the month

$ 54,000

Less: Balance in the Finished Goods inventory account at the End of the month

$ (40,400)

Unadjusted Cost of Goods sold

$ 282,600

Actual manufacturing overhead cost incurred

$ 145,100

Less: Manufacturing overhead cost applied to Work in Process

$ (133,000)

Under applied Overhead cost

$ 12,100

Adjusted Cost of Goods sold = 282600 -12100 =

$ 270,500