Question

Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing department. The following information was available for the month of June. Direct materials $ 90,000 Direct labor 30,000 Manufacturing overhead applied 40,000 Total costs to account for in June $ 160,000 The amounts of work in process at the beginning and end of the month were immaterial and assigned no dollar value. During June, 20,000 units were completed, of which 16,000 were sold on account at $20 per unit. Complete a production cost report for Shamrock Industries for the month of June. (Do not round intermediate calculations.)

Answer 1

solution:

Shamrock Industries
Production Cost Report
Particulars	Amount
Direct materials	$90,000.00
Direct labor	$30,000.00
Manufacturing overhead	$40,000.00
Total manufacuring costs incurred during the period	$160,000.00
Add: Beginning WIP	$0.00
Total cost of work in process	$160,000.00
Less: Ending WIP	$0.00
Cost of goods manufactured	$160,000.00
Add: Beginning finished goods inventory	$0.00
Cost of goods available for sale	$160,000.00
Less: Ending finished goods inventory ($160,000*4000/20000)	$32,000.00
Cost of goods sold	$128,000.00