The Flow of Manufacturing Costs: A Comprehensive Problem
The balances in the perpetual inventory accounts of Mountainside Manufacturing Corporation at the beginning and end of the current year are as follows:
of Yearof Year
Work in Process10,0008,000
Finished Goods Inventory29,00030,000
Total dollar amounts debited and credited during the year to the accounts used in recording manufacturing activities are as follows:
Materials Inventory$425,000$ ?
Work in Process Inventory??
Finished Goods Inventory??
Using these data, state or compute for the year the following amounts:
Direct materials purchased.
Direct materials used.
Payments of direct labor payrolls.
Direct labor cost assigned to production.
The overhead application rate used during the year, assuming that overhead was applied as a percentage of direct labor costs.
Total manufacturing costs charged to the Work in Process Inventory account during the year.
The cost of finished goods manufactured.
The cost of goods sold.
The total amount to be classified as inventory in the year-end balance sheet.
Prepare a schedule of the cost of finished goods manufactured.
Alternate Problems for use with Financial and Managerial Accounting, 12e16-5
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