Concept explainers
The following balances are known for A Company at the begining of the year:
|
|
|
|
Direct materials inventory |
$ |
24,000 |
|
Work-in-process inventory |
|
9,000 |
|
Finished goods inventory |
|
22,000 |
|
Manufacturing |
|
33,000 |
|
Accounts payable |
|
12,000 |
|
In the beginning of June, some of the current data were lost and you have been asked to help the finance department to reconstruct the data. After Reviewing old documents and interviewing employees you have generated the following additional information:
The production superintendent’’s
The account of Accounts Payable is the only account for direct material purchases. The Clerk remembers clearly that the balance in the Accounts Payable on June 30 was $16,000. An analysis of cancelled checks indicated payments of $80,000 were made to suppliers during June.
Payroll records indicate that 5,200 direct labor-hours were recorded for June. It was verified that there were no variations in pay rates among employees during June.
Records at the warehouse indicate that the Finished Goods Inventory totaled $32,000 on June 30.
Another record kept manually indicates that the Cost of Goods Sold in June totaled $168,000.
The predetermined overhead rate was based on an estimated 60,000 direct labor-hours for the year and an estimated $360,000 in
Required:
Compute the Cost of Goods Manufactured.
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- Manufacturing Company Balance Sheet Partial balance sheet data for Diesel Additives Company at August 31 are as follows: Line Item Description Amount Finished goods inventory $13,600 Prepaid insurance 13,900 Accounts receivable 35,400 Work in process inventory 54,400 Supplies 24,500 Materials inventory 29,900 Cash 38,100 Prepare the “Current assets” section of Diesel Additives Company’s balance sheet at August 31. Diesel Additives Company Balance Sheet August 31 Line Item Description Amount Amount Current assets: $- Select - - Select - Inventories: $- Select - - Select - - Select - Total inventories Total inventories - Select - - Select - Total current assets $Total current assetsarrow_forwardthe following data (in thousands of dollars) have been taken from the accounting records of Karstone Corporatino for the just completed year. Sales $880 Raw materials in inventory, beginning: $20 Raw materials inventory, ending: $30 Purchases of raw materials: $160 Direct labor: $180 Manufacturing overhead: $230 Administrative expenses $100 Selling expenses: $130 Work in process inventory, beginning: $80 Work in process inventory, ending: $30 Finished goods in inventory, beginning: $120 Finished goods in inventory, ending: $100 The cost of goods manufactured (finished) for the year (in thousands of dollars) was: $610 $600 $500 $630 Show work/calculationarrow_forwardGive me correct answer with explanation.sarrow_forward
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