Question

1. The financial records for the Harrison Manufacturing Company have been destroyed in a fire. The...

1. The financial records for the Harrison Manufacturing Company have been destroyed in a fire. The following information has been obtained from a separate set of books maintained by the cost accountant. The cost accountant now asks for your assistance in computing the missing amounts.

Direct Materials Inventory
Beg. Bal. 10,000 ? Transferred Out
Purchases ?
End. Bal. 8,400
Cost of Goods Sold
77,000
Work-in-Process Inventory
Beg. Bal. 9,500 ? Transferred Out
Materials 22,000
Labor 15,500
Overhead 10,000
End. Bal. ?
Finished Goods Inventory
Beg. Bal. ? ? Transferred Out
Transferred in 41,500
End. Bal. 6,200


What is the amount of the materials purchased?

2.

Grover Company has the following data for the production and sale of 2,100 units.
  

Sales price per unit $ 900 per unit
Fixed costs:
Marketing and administrative $ 357,000 per period
Manufacturing overhead $ 283,500 per period
Variable costs:
Marketing and administrative $ 55 per unit
Manufacturing overhead $ 80 per unit
Direct labor $ 105 per unit
Direct materials $ 280 per unit


What is the full cost per unit of making and selling the product?

Homework Answers

Answer #1
1)
Particulars Amount (in $ )
Ending Balance of Direct Materials Inventory $ 8,400
Add: Work-in-Process Inventory (Materials used) $ 22,000
Less: Beginning Balance of Direct Materials Inventory ($ 10,000)
Amount of the materials purchased $ 20,400
2)
Particulars Per unit (in $ )
Direct material $ 280
Direct labor $ 105
Variable manufacturing overhead $ 80
Variable marketing and administrative $ 55
Fixed cost
( $ 357,000 + $ 283,500 ) / 2,100 Units
$ 305
Full cost per unit of making and selling the product $ 825
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