Use the following information for Hayes, Inc., as of December 31 to answer the n
ID: 2373782 • Letter: U
Question
Use the following information for Hayes, Inc., as of December 31 to answer the next questions:
Administrative salaries $ 32,000
Depreciation of factory equipment 25,000
Depreciation of delivery vehicles 8,000
Direct Labor 68,000
Factory supplies used 12,000
Finished goods inventory, January 1 57,000
Finished goods inventory, December 31 68,000
Factory insurance15,500
Interest expense 12,000
Factory utilities 14,000
Factory maintenance 7,500
Raw materials inventory, January 1 8,000
Raw materials inventory, December 314,000
Raw material purchases 125,000
Rent on factory building25,000
Repairs of factory equipment11,500
Sales commissions 37,500
Goods in process inventory, January 1 3,500
Goods in process inventory, December 312,000
1. What is the correct amount of Cost of Goods Manufactured based on the Hayes, Inc. information?
$398,500
$386,000
$309,000
$306,000
$296,500
2. What is the total amount of manufacturing costs added to Goods In Process during the period?
$393,000
$325,000
$389,500
$397,000
$307,500
3. What is the correct amount of overhead based on the Hayes Inc. information?
$192,000
$110,500
$200,000
$150,000
$77,500
PLEASE SHOW WORK
Explanation / Answer
2.)Manufacturing cost is the sum of costs of all resources consumed in the process of making a product. The manufacturing cost is classified into three categories: direct materials cost, direct labor cost and manufacturing overhead.
hence manufacturing costs = Direct Labor + Depriciation of equipment + factory insurance + Factory Supplies used + Factory Utilities + Raw Material Prchases - Raw material ending + Raw material initial + Rent + Repair & maint = $ 307,500