Find:Direct Material UsedFactory OverheadPrime CostConversion CostManufacturing CostCost of Goods SoldCost of Goods Manufactured A partial trial balance of the Brown Manufacturing Corporation as of December31. 2000 follows:PROFITPurchase of raw materialsDirect laborIndirect laborFactory rentOffice rentDepreciation - machineryDepreciation - office equipmentInsurance factorySalespersons' salariesRepairs and maintenance - machineryAdministrative salariesMiscellaneous factoryMiscellaneous officeSales160,000225.00040,000৪4.00048,00035,0008,00018,00072,00012,00050,00026,00040,000850,000January 1 inventories are:Raw materialsWork in processFinished goodsP 45,00030,000125,000December 31 inventories are:Raw materialsWork in processFinished goodsP 40,00035,000110,000..........................

Prime cost means the addition of direct material and direct labor and other direct expenses.…

Answered: Direct Material Used Factory Overhead…

Business

Accounting

Direct Material Used Factory Overhead Prime Cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

Find:

Direct Material Used

Factory Overhead

Prime Cost

Conversion Cost

Manufacturing Cost

Cost of Goods Sold

Cost of Goods Manufactured

A partial trial balance of the Brown Manufacturing Corporation as of December
31. 2000 follows:
PROFIT
Purchase of raw materials
Direct labor
Indirect labor
Factory rent
Office rent
Depreciation - machinery
Depreciation - office equipment
Insurance factory
Salespersons' salaries
Repairs and maintenance - machinery
Administrative salaries
Miscellaneous factory
Miscellaneous office
Sales
160,000
225.000
40,000
৪4.000
48,000
35,000
8,000
18,000
72,000
12,000
50,000
26,000
40,000
850,000
January 1 inventories are:
Raw materials
Work in process
Finished goods
P 45,000
30,000
125,000
December 31 inventories are:
Raw materials
Work in process
Finished goods
P 40,000
35,000
110,000
..........
.......
.........

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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