Students please fill-in areas that are shaded Student Name Course Name Student I
ID: 2609356 • Letter: S
Question
Students please fill-in areas that are shaded Student Name Course Name Student ID: Date: Knight, Corp., a lamp manufacturer, provided the following information for the year ended December 31, 2012: Endin Inventories Materials Work in process Finished goods Beginnin 56,000 103,000 41,000 23,000 63,000 48,000 Other information: Depreciation: plant building and equipment Materials purchases Insurance on plant Sales salaries expense Repairs and maintenance-plant Indirect labor Direct labor Administrative expenses $ 16,000 159,000 22,000 46,000 8,000 32,000 122,000 59,000Explanation / Answer
Answer:
(a)
Knight Corp.,
Schedule of Cost of Goods Manufactured
Year Ended December 31, 2014
Beginning Work-in-Process Inventory
$ 103,000
Direct Materials Used:
Beginning Raw Material Inventory
$ 56,000
Purchases of Raw Material
159,000
Raw Material Available for Use
215,000
Ending Raw Material Inventory
(23,000)
Direct Materials Used:
$ 192,000
Direct Labor
122,000
Manufacturing Overhead:
Depreciation - Plant building and Equipment
16,000
Insurance on Plant
22,000
Repairs and maintenance - Plant
8,000
Indirect Labor
32,000
Total Manufacturing Overhead
78,000
Total Manufacturing Cost Incurred during Year
392,000
Total Manufacturing Cost to Accounts for
495,000
Ending Work-in-Process Inventory
(63,000)
Cost of Goods Manufactured
$ 432,000
(b)
Cost of Goods Manufactured
$ 432,000
Divided by: Total Units Produced
2,160
Unit Product Cost
$ 200
Knight Corp.,
Schedule of Cost of Goods Manufactured
Year Ended December 31, 2014
Beginning Work-in-Process Inventory
$ 103,000
Direct Materials Used:
Beginning Raw Material Inventory
$ 56,000
Purchases of Raw Material
159,000
Raw Material Available for Use
215,000
Ending Raw Material Inventory
(23,000)
Direct Materials Used:
$ 192,000
Direct Labor
122,000
Manufacturing Overhead:
Depreciation - Plant building and Equipment
16,000
Insurance on Plant
22,000
Repairs and maintenance - Plant
8,000
Indirect Labor
32,000
Total Manufacturing Overhead
78,000
Total Manufacturing Cost Incurred during Year
392,000
Total Manufacturing Cost to Accounts for
495,000
Ending Work-in-Process Inventory
(63,000)
Cost of Goods Manufactured
$ 432,000