Question

The Enrique Company recorded the following transactions for February 20x1: Materials Work in Process Finished Goods...

The Enrique Company recorded the following transactions for February 20x1:
Materials
Work in Process
Finished Goods
Purchases
$100,000
Beginning inventory
180,000
$ 8,000
$ E
Ending inventory
A
30,000
30,000
Direct materials used
90,000
Direct labor
B
Manufacturing overhead (includes indirect materials used of $10,000)
115,000
Transferred to finished goods
C
Cost of goods sold
D
Sales were $560,000, with sales prices determined by adding a 40% markup to the firm's manufacturing cost. The total cost of direct materials used, direct labor, and manufacturing overhead during the month was $285,000.
Note: The materials account includes both direct materials and indirect materials.
Required:
Calculate the missing values.

Homework Answers

Answer #1

SOLUTION:

Item: A
Beginning materials 18,000
Plus: Purchases 100,000
Minus: Direct materials used -90,000
Minus: Indirect materials used -10,000
Ending materials 18,000
Item: B
Total production costs 285,000
Minus: Direct materials used -90,000
Minus: Manufacturing overhead -115,000
Direct labor 80,000
Item: C
Beginning work in process 8,000
Plus: Total production costs 285,000
Minus: Ending work in process -20,000
Transferred to finished goods 273,000
Item: D
Sales 560,000
Rate 140%
COGS 400,000
Item: E
Ending finished goods 30,000
Plus: Cost of goods sold 400,000
Minus: Transferred to finished goods -273,000
Beginning finished goods 157,000
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