X hits on this document

145 views

0 shares

0 downloads

0 comments

5 / 14

Problem 16.5A

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:

EndBeginning

of Yearof Year

Inventory accounts:

Materials$30,000$25,000

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:

DebitCredit

EntriesEntries

Account:

Materials Inventory$425,000$           ?

Direct Labor200,000210,000

Manufacturing Overhead420,000420,000

Work in Process Inventory??

Finished Goods Inventory??

Instructions

a.

Using these data, state or compute for the year the following amounts:

1.

Direct materials purchased.

2.

Direct materials used.

3.

Payments of direct labor payrolls.

4.

Direct labor cost assigned to production.

5.

The overhead application rate used during the year, assuming that overhead was applied as a percentage of direct labor costs.

6.

Total manufacturing costs charged to the Work in Process Inventory account during the year.

7.

The cost of finished goods manufactured.

8.

The cost of goods sold.

9.

The total amount to be classified as inventory in the year-end balance sheet.

b.

Prepare a schedule of the cost of finished goods manufactured.

Alternate Problems for use with Financial and Managerial Accounting, 12e16-5

© The McGraw-Hill Companies, 2002

Document info
Document views145
Page views170
Page last viewedThu Dec 08 10:02:27 UTC 2016
Pages14
Paragraphs390
Words2576

Comments