Renka’s Heaters selected data for October 2014 are presented here (in millions):
ID: 2471793 • Letter: R
Question
Renka’s Heaters selected data for October 2014 are presented here (in millions):
Direct materials inventory 10/ 1/ 2014 $105
Direct materials purchased 365
Direct materials used 385
Total manufacturing overhead costs 450
Variable manufacturing overhead costs 265
Total manufacturing costs incurred during October 2014 1,610
Work-in-process inventory 10/ 1/ 2014 230
Cost of goods manufactured 1,660
Finished goods inventory 10/ 1/ 2014 130
Cost of goods sold 1,770
Calculate the following costs:
Direct materials inventory on 10/31/2014
Fixed manufacturing overhead costs for October 2014
Direct manufacturing labor costs for October 2014
Work-in-process inventory on 10/31/2014
Cost of finished goods available for sale in October 2014
Finished goods inventory 10/31/2014
Explanation / Answer
1 $ Direct materials inventory 10/ 1/ 2014 105 Add:Direct materials purchased 365 Direct Material avalilable for production 470 Less:Direct materials used (385) Direct materials inventory on 10/31/2014 85 2 $ Total manufacturing overhead costs 450 Less: Variable manufacturing overhead costs (265) Fixed manufacturing overhead costs for October 2014 185 3 $ Total Manufacturing Cost 1610 Less:Direct materials used (385) Less:Total manufacturing overhead costs (450) Direct manufacturing labor costs for October 2014 775 4 $ Work-in-process inventory 10/ 1/ 2014 230 Total Manufacturing Cost 1610 Work in progress available for production 1840 Less: Cost of goodsmanufactured (1,660) Work-in-process inventory on 10/31/2014 180 5 $ Finished goods inventory 10/ 1/ 2014 130 Add:Cost of goods manufactured 1660 Cost of finished goods available for sale in October 2014 1790 6 $ Cost of finished goods available for sale in October 2014 1790 Less: Cost of Goods sold (1,770) Finished goods inventory 10/31/2014 20