174.Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the currentyear. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600....





174.Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the currentyear. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costspertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of$7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work inprocess inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.





Prepare a statement of cost of goods manufactured.







175.Davis Manufacturing Company had the following data:





































January 1




December 31




Accounts receivable




$27,000




$33,000




Materials inventory




22,500




6,000




Work in process inventory




70,200




48,000




Finished goods inventory




3,000




15,000






Collections on account were $625,000.



Cost of goods sold was 68% of sales.



Direct materials purchased amounted to $90,000.Factory overhead was 300% of the cost of direct labor.





Compute:



a)Sales revenue (all sales were on account)



b)Cost of goods sold



c)Cost of goods manufactured



d)Direct labor used



e)Direct materials incurred



f)Factory overhead incurred











176.Taylor Industries had a fire and some of its accounting records were destroyed. Available information is presentedbelow for the year ended December 31.

























Materials inventory, December 31




$ 15,000




Direct materials purchased




28,000




Direct materials used




22,900




Cost of goods manufactured




135,000






Additional information:



Factory overhead is 150% of direct labor cost



Finished goods inventory decreased by $18,000 during the yearWork in process inventory increased by $12,000 during the year





Calculate:



a)Materials inventory, January 1



b)Direct labor cost



c)Factory overhead incurred



d)Cost of goods sold













May 15, 2022
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