a. Compute the cost of direct materials purchased during the year. b. Compute th

Question

a. Compute the cost of direct materials purchased during the year.
b. Compute the predetermined overhead rate that was used during the past year.
c. Compute the Cost of Goods Manufactured for the past year. Prepare, in good form, the Schedule of Cost of Goods Manufactured for this firm.
d. Compute the unadjusted Cost of Goods Sold for the past year. Prepare in good form, the Cost of Goods Sold section of the Income Statement.

$1,250 Total manufacturing costs charged to production during the year (includes direct materials, direct labor, and applied manufacturing overhead) $6,050 $2,800 $1,000 Manufacturing overhead applied Inventories: $130 $80 $250 $400 $300 $200 Direct materials, January 1 Work in process, January 1 Work in process, December 31 Finished goods, January 1. Finished goods, December 31

Explanation / Answer

A-

B-

Predetermined Overhead Rate=($2800/3250)*100=86.15%

C-

D-

Direct Material Consumed $1,250.00 Closing Inventory of Material $80.00 Total $1,330.00 Less: Opening Inventory of Material $130.00 Material Purchased $1,200.00

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