costs and inventory data were taken from the accounts of Simon Company for 2016:
ID: 2567126 • Letter: C
Question
costs and inventory data were taken from the accounts of Simon Company for 2016: Inventories Raw materials 8,000 15,000 16,000 Work in process s 7,000 13,000 12,000 Finished goods Costs incurred: Direct labor Factory rent $98,000 42,000 8,000 10,000 6,000 9,000 Factory utilities Indireet materials Indirect labor Operating expenses structions: Calculate the following: a. Raw materials available for use 17,000 b. Direct material used Total manufacturing costs Total Work in Process otal cost of goods manufacturedExplanation / Answer
Answer a.
Raw Materials available for use = Beginning Raw Materials + Raw Materials purchases
Raw Materials available for use = $8,000 + $98,000
Raw Materials available for use = $106,000
Answer b.
Direct Materials used = Raw Materials available for use - Ending Raw Materials
Direct Materials used = $106,000 - $7,000
Direct Materials used = $99,000
Answer c.
Manufacturing Overhead = Factory Rent + Factory Utilities + Indirect Materials + Indirect Labor
Manufacturing Overhead = $8,000 + $10,000 + $6,000 + $9,000
Manufacturing Overhead = $33,000
Total Manufacturing Costs = Direct Materials used + Direct Labor + Manufacturing Overhead
Total Manufacturing Costs = $99,000 + $42,000 + $33,000
Total Manufacturing Costs = $174,000
Answer d.
Total Work in Process = Beginning Work in Process + Total Manufacturing Costs
Total Work in Process = $15,000 + $174,000
Total Work in Process = $189,000
Answer e.
Cost of Goods Manufactured = Total Work in Process - Ending Work in Process
Cost of Goods Manufactured = $189,000 - $13,000
Cost of Goods Manufactured = $176,000
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