11) Selected financial information for Sunnydale Manufacturing is presented in t
ID: 2494442 • Letter: 1
Question
11) Selected financial information for Sunnydale Manufacturing is presented in the following table (000s omitted). What was cost of goods manufactured?
Sales revenue
$ 4,000
Purchases of raw materials
$ 500
Direct labor
$ 450
Manufacturing overhead
$ 620
Operating expenses
$ 700
Beginning raw materials inventory
$ 150
Ending raw materials inventory
$ 170
Beginning work in process inventory
$ 320
Ending work in process inventory
$ 310
Beginning finished goods inventory
$ 250
Ending finished goods inventory
$ 200
A. $1,560 B. $1,540 C. $1,580 D. $1,550
How do u calculate the direct materials used
Sales revenue
$ 4,000
Purchases of raw materials
$ 500
Direct labor
$ 450
Manufacturing overhead
$ 620
Operating expenses
$ 700
Beginning raw materials inventory
$ 150
Ending raw materials inventory
$ 170
Beginning work in process inventory
$ 320
Ending work in process inventory
$ 310
Beginning finished goods inventory
$ 250
Ending finished goods inventory
$ 200
Explanation / Answer
A. $1,560 Statement showing cost of goods Manufactured Particulars Amount Opening raw Materials 150.00 Purchases of Raw Materials 500.00 Total raw Material Available = op+ Pur 650.00 Closing Raw Materials 170.00 Raw Material Used = 650 - 170 480.00 Direct Labor 450.00 Manufacturing overhead 620.00 Opening WIP 320.00 Closing WIP (310.00) Cost of Goods Manufactured 1,560.00
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