Question

Logan’s Enterprises reported the following data for May.

Beginning balance, Direct Materials Inventory	$45,000
Beginning balance, Work in Process Inventory	52,000
Beginning balance, Finished Goods Inventory	62,000
Ending balance, Direct Materials Inventory	47,000
Purchase of direct materials	92,000
Direct labor	48,000
Manufacturing overhead	42,000
Cost of Goods Manufactured	200,000
Cost of Goods Sold	220,000

Required:

1. How much direct materials were used in production?
2. What were the total manufacturing costs for the month of May?
3. What was the ending balance in the Finished Goods Inventory account?

Answer 1

a
Beginning balance, Direct Materials Inventory	45000
Add: Purchases of raw materials	92000
Total raw materials available	137000
Less: Ending balance, Direct Materials Inventory	47000
Direct materials used in production	90000
b
Direct materials used in production	90000
Direct labor	48000
Manufacturing overhead	42000
Total manufacturing costs for the month of May	180000
c
Beginning balance, Finished Goods Inventory	62000
Add: Cost of Goods Manufactured	200000
Less: Cost of Goods Sold	220000
Ending balance in the Finished Goods Inventory	42000