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tollowing data should be used for questions 26-29 Raw materials inventory, Janua

ID: 2601031 • Letter: T

Question

tollowing data should be used for questions 26-29 Raw materials inventory, January 1 Raw materials inventory, December 31 Work in process, January 1 Work in process, December 31 Finished goods, January 1 Finished goods, December 31 Raw materials purchases Direct labor Factory utilities Indirect labor Factory depreciation Selling and administrative expenses $10,000 20,000 9,000 6,000 20,000 16,000 400,000 180,000 75,000 25,000 200,000 210,000 Direct materials used is a $430,000. Cc. $400,000 b. $410,000. d. $390,000 27. Assume your answer to question 26 above is $400,000. Total

Explanation / Answer

26 Direct Material Used Raw materials inventory, January 1 $10,000 Add: Raw materials purchases    400,000 Total raw materials available $410,000 Less: Raw materials inventory, December 31      20,000 Total raw materials used          390,000 Ans is d 27 Total raw materials used          400,000 Assumed as per question Direct Labor          180,000 Manufacturing Overhead Factory utilities      75,000 Indirect labor      25,000 Factory depreciation    200,000 Total Manufacturing Overhead          300,000 Total Manufacturing Costs          880,000 Ans is a 28 Total Manufacturing Costs          850,000 Assumed as per question Add: Work in process, January 1              9,000          859,000 Less: Work in process, December 31              6,000 Cost of goods manufactured          853,000 Ans is c 29 Cost of goods manufactured          870,000 Assumed as per question Add: Finished goods, January 1            20,000          890,000 Less: Finished goods, December 31            16,000 Cost of goods sold          874,000 Ans is d Note: for q no 26 actual data is used and for other 3 questions assumed data is used along with data given to arrive at answer.