The following chart shows how costs flow through a business as a product is manufacturcost amounts. Compute the cost amounts in the empty boxes.Materials ActivityRaw materialsInventory, beginning$148,000Production ActivityDirect labor usedin production$360,000Work In processInventory, beginning$87,000Sales ActivityAnished goodsInventory, beginning$Raw materials$542000Raw materials availablefor use in production$Direct materials usedin production$Total work InproboesCost of goodsmanufactured$1,596,000Cost of goodsavailable for sale$1,741,500spidRaw materialsInventory, ending$180,000Factory overheadused in production$760,000Work in processInventory, endingFinished goodsInventory, ending$140,200

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Answered: The following chart shows how costs…

The following chart shows how costs flow through a business as a product is manufactur cost amounts. Compute the cost amounts in the empty boxes.

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

The following chart shows how costs flow through a business as a product is manufactur
cost amounts. Compute the cost amounts in the empty boxes.
Materials Activity
Raw materials
Inventory, beginning
$148,000
Production Activity
Direct labor used
in production
$360,000
Work In process
Inventory, beginning
$87,000
Sales Activity
Anished goods
Inventory, beginning
$
Raw materials
$542000
Raw materials available
for use in production
$
Direct materials used
in production
$
Total work In
proboes
Cost of goods
manufactured
$1,596,000
Cost of goods
available for sale
$1,741,500
spid
Raw materials
Inventory, ending
$180,000
Factory overhead
used in production
$760,000
Work in process
Inventory, ending
Finished goods
Inventory, ending
$140,200

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