Cost Definitions and Calculations
For each of the following independent situations, calculate the missing values:
1. The Belen plant purchased $82,100 of direct
materials during June. Beginning direct materials inventory was
$3,600, and direct materials used in production were $71,200. What
is ending direct materials inventory?
$
2. Forster Company produced 11,200 units at an
average cost of $4.40 each. The beginning inventory of finished
goods was $2,244. (The average unit cost was $4.40.) Forster sold
11,320 units. How many units remain in ending finished goods
inventory?
units
3. Beginning work in process (WIP) was
$114,600, and ending WIP was $117,700. If total manufacturing costs
were $353,250, what was the cost of goods manufactured?
$
4. If the conversion cost is $97 per unit, the
prime cost is $61, and the manufacturing cost per unit is $122,
what is the direct materials cost per unit?
$ per unit
5. Total manufacturing costs for August were $410,000. Prime cost was $53,000, and beginning WIP was $79,000. The cost of goods manufactured was $439,000. Calculate the cost of overhead for August and the cost of ending WIP.
Cost of overhead for August | $ |
Ending WIP | $ |
1 | |||||||
Ending direct materials inventory = 82100+3600-71200= $14500 | |||||||
2 | |||||||
Units in ending finished goods inventory = 11200+(2244/4.40)-11320= 390 units | |||||||
3 | |||||||
Cost of goods manufactured = 114600+353250-117700= $350150 | |||||||
4 | |||||||
Direct materials cost per unit = 122-97 = $25 | |||||||
5 | |||||||
Cost of overhead for August = 410000-53000= $357000 | |||||||
Ending WIP = 79000+410000-439000= $50000 | |||||||
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