RenkaRenka Shoe Company makes loafers. During the most recent year, RenkaRenka i
ID: 2592448 • Letter: R
Question
RenkaRenka
Shoe Company makes loafers. During the most recent year,
RenkaRenka
incurred total manufacturing costs of
$ 26 comma 400 comma 000$26,400,000.
Of this amount,
$ 2 comma 100 comma 000$2,100,000
was direct materials used and
$ 19 comma 800 comma 000$19,800,000
was direct labor. Beginning balances for the year were Raw Materials Inventory,
$ 600 comma 000$600,000;
Work-in-Process Inventory,
$ 800 comma 000$800,000;
and Finished Goods Inventory,
$ 700 comma 000$700,000.
At the end of the year, balances were Raw Materials Inventory,
$ 900 comma 000$900,000;
Work-in-Process Inventory,
$ 1 comma 400 comma 000$1,400,000;
and Finished Goods Inventory,
$ 990 comma 000$990,000.
Requirements
Analyze the inventory accounts to determine:
1. Cost of raw materials purchased during the year.
2.
Cost
of goods manufactured for the year.
3. Cost of goods sold for the year.
1. Cost of raw materials purchased during the year.
Direct Materials
Direct Materials Used
Beginning Raw Materials Inventory
Ending Raw Materials Inventory
Purchases
2.
Cost
of goods manufactured for the year.
Work-in-Process
Beginning Work-in-Process Inventory
Direct Materials Used
Direct Labor
Manufacturing Overhead
Total Manufacturing Costs Incurred during the Year
Total Manufacturing Costs to Account For
Ending Work-in-Process Inventory
Cost of Goods Manufactured
3. Cost of goods sold for the year.
Finished Goods
Beginning Finished Goods Inventory
Cost of Goods Manufactured
Cost of Goods Available for Sale
Ending Finished Goods Inventory
Cost of Goods Sold
Direct Materials
Direct Materials Used
Beginning Raw Materials Inventory
Ending Raw Materials Inventory
Purchases
Explanation / Answer
1.
Raw material purchased:
2.
Cost of good manufactured for the year:
3. Cost of good sold :
Direct material used $2,100,000 Add ending Raw material inventory $900,000 Less beginning Raw material inventory $600,000 Raw material purchases $2,400,000