The following T accounts summarize the flow of manufacturing costs during the cu
ID: 2475939 • Letter: T
Question
The following T accounts summarize the flow of manufacturing costs during the current year through the ledger accounts of Marston Manufacturing Company: Using the data above, determine the following amounts. Some amounts already appear in the T accounts; others require short compulations. 1. Purchases of direct materials. 2. Direct materials used during the year. 3. Direct labor costs assigned to production. 4. The year-end liability to direct workers for wages payable. 5. The overhead costs assigned to production during the year. 6. Total manufacturing costs charged to production during the year. 7. The cost of finished goods manufactured. 8. The cost of goods sold. 9. The total costs classified as inventory in the year-end balance sheet.Explanation / Answer
1)Purchase of direct material = 390000
2)Used = 43000 +390000-39000= 394000
3) Direct labor cost assigned = 210000
4)Liability = 6500
5)overhead cost assigned to production = 294000
6)Total manufacturing cost charged to production = 394000+210000+294000=898000
7)cost of finished goods = 889000
8)cost of goods sold = 95000+889000-120000=864000
9)cost classified as inventory :
Raw material inventory +WIP +Finished goods
39000+31000+120000=190000