Please show your calculation for the following: The flow of manufacturing costs

Question

Please show your calculation for the following:

The flow of manufacturing costs through the ledger accounts of Superior Locks, Inc., in the current year is illustrated as follows in summarized form Materials Inventory Work in Process Inventory Beg. balance $ 13,000 269,000 Ending balance $17,000 Beg. balance 19,000 $614,400 134,000 214,400 Ending balance Direct Labor Finished Goods Inventory $131,300 $134,000 Ending balance$2,700 Beg. balance 46,000 614,400 Ending balance 53,400 Manufacturing Overhead Cost of Goods Sold $214,400 $214,400

Explanation / Answer

SOLUTION

S.No. Description Amount ($) A. Purchases of direct materials 269,000 B. Cost of direct materials used- Materials inventory, Beginning of year 13,000 Add: Purchase of direct materials 269,000 Cost of materials available for use 282,000 Less: Materials inventory, end of year (17,000) Cost of direct materials used 265,000 C. Direct labor costs assigned to production 134,000 D. Year-end liability for direct wages payable 2,700 E. Total manufacturing costs- Direct materials used (part A) 265,000 Direct labor costs 134,000 Manufacturing overhead 214,400 Total manufacturing costs 613,400 F. Cost of finished goods manufactured 614,400 G. Ending work in process inventory- Work in process inventory, Beginning of year 19,000 Add: Total manufacturing costs (part E) 613,400 Cost of goods in process during the year 632,400 Less: Cost of finished goods manufactured (614,400) Work in process inventory, End of year 18,000 H. Cost of goods sold- Beginning inventory of finished goods 46,000 Add: Cost of finished goods manufactured 614,400 Cost of goods available for sale 660,400 Less: Ending inventory of finished goods (53,400) Cost of goods sold 607,000 I. Total inventory at the end- Materials 17,000 Work in process (Part G) 18,000 Finished goods 53,400 Total inventory 88,400

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