Shamrock Industries uses process costing. All of the company\'s manufacturing ac

Question

Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing department. The following information was available for the month of June. Direct materials $ 90,000 Direct labor 30,000 Manufacturing overhead applied 40,000 Total costs to account for in June $ 160,000 The amounts of work in process at the beginning and end of the month were immaterial and assigned no dollar value. During June, 20,000 units were completed, of which 16,000 were sold on account at $20 per unit. Complete a production cost report for Shamrock Industries for the month of June. (Do not round intermediate calculations.)

Explanation / Answer

Cost of Goods manufactured: Beginning Balance of WIP 0 Current cost of Manufacturing Material 90000 Labour 30000 Overheads applied 40000 Total cost of manufacturing 160000 Cost of Goods manufacturing 160000 Less: Ending Balance of WIP 0 Cost of Goods manufactured: 160000 Divide; Number of units produced 20000 Unit product cost 8 Sales revenue (16000 units @20) 320000 Less: Cost of goods sold Beginning balance of FG invntory 0 Add: Cost of Goods manufactured 160,000 Cost of goods available for sale 160,000 Less: Ending balance of FG (4000 units @8) 32,000 Cost of Goods sold 128000 Gross margin 192000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.