Book Air 5) Flow of manufacturing costs The following data are taken from the ac
ID: 2538518 • Letter: B
Question
Book Air 5) Flow of manufacturing costs The following data are taken from the accounting records of Victoria Mfg. Co.: Beg. of End of Year Year $25,000 $28,000 $33,000 $22,000 $23,000 $32,000 Inventories: Materials Work in Process Finished Goods Manufacturing costs: Direct materials used Direct labor costs charged to production Manufacturing overhead $22,000 $12,000 $42,000 Compute the following amounts: (a) Direct materials purchased during the period: $ (b) Total manufacturing costs charged to production (the Work in Process Inventory account) during the year: $_ (c) The cost of finished goods manufactured during the year: $ (d) The cost of goods sold during the year: $_Explanation / Answer
Answer a.
Direct Materials used = Materials, beginning of year + Direct materials purchased - Materials, end of year
$22,000 = $22,000 + Direct materials purchased - $25,000
Direct materials purchased = $25,000
Answer b.
Total Manufacturing Cost = Direct materials used + Direct Labor cost + Manufacturing overhead
Total Manufacturing Cost = $22,000 + $12,000 + $42,000
Total Manufacturing Cost = $76,000
Answer c.
Cost of Goods Manufactured = Work in process, beginning + Total Manufacturing Cost - Work in process, ending
Cost of Goods Manufactured = $23,000 + $76,000 - $28,000
Cost of Goods Manufactured = $71,000
Answer d.
Cost of Goods sold = Finished Goods, beginning of Year + Cost of Goods Manufactured - Finished Goods, end of year
Cost of Goods sold = $32,000 + $71,000 - $33,000
Cost of Goods sold = $70,000