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?
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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