The data related to Macro build company present the following data for the month of August 2018. Direct labor cost $16,000 (160% of factory overhead) Cost of sales $56,000 Beginning and ending inventory balances of inventory are given below: August 1 $8,000 $8,000 $14,000 August 31 $8,600 $12,000 $18,000 Raw materials Work-in-progress Finished goods Other data: Selling expenses General and administrative expenses S3,400 $2,600 $75,000 Sales for the month Among, the given options, determine the cost of raw material purchased. а. $32,600 b. $36,000 с. $32,000 d. $28,600

The data related to Macro build company present the following data for the month of August 2018. Direct labor cost $16,000 (160% of factory overhead) Cost of sales $56,000 Beginning and ending inventory balances of inventory are given below: August 1 $8,000 $8,000 $14,000 August 31 $8,600 $12,000 $18,000 Raw materials Work-in-progress Finished goods Other data: Selling expenses General and administrative expenses S3,400 $2,600 $75,000 Sales for the month Among, the given options, determine the cost of raw material purchased. а. $32,600 b. $36,000 с. $32,000 d. $28,600

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 11PB: Production information shows these costs and units for the smoothing department in August. What is...

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On August 1, Cairle Companys work-in-process inventory consisted of three jobs with the following costs: During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold. Cairles selling and administrative expenses for August were 1,200. Required: Prepare an income statement for Cairle Company for August.
OReilly Manufacturing Co.s cost of goods sold for the month ended July 31 was 345,000. The ending work in process inventory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. No indirect materials were used during the period. Other information pertaining to OReillys inventories and production for July is as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information. Start by using cost of goods sold to solve for the cost of goods manufactured.) 2. Prepare a schedule to compute the prime cost incurred during July. 3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.
Marzons records show raw materials Inventory had a beginning balance of $200 and an ending balance of $300. If the cost of materials used during the month was $900, what were the purchases made during the month?
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
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