Question

# Basil Industries reported the following information for December: Please show work Beginning balance, Raw Materials Inventory...

Basil Industries reported the following information for December:

 Beginning balance, Raw Materials Inventory \$187,500 Beginning balance, Work in process Inventory 300,000 Beginning balance, Finished Goods Inventory 106,250 Purchases of raw materials 337,500 Factory electricity 62,500 Direct labor payroll 200,000 Depreciation on factory equipment 218,750 Insurance on factory building 50,000 Indirect materials used in production 43,750 Total raw materials used in production 406,250 Indirect labor payroll 150,000 Cost of goods manufactured 1,250,000 Cost of goods sold 1,312,500

Required: Using the information provided above, calculate the following items below.
Note: total raw materials used in production includes both direct and indirect materials. Assume actual manufacturing overhead = applied overhead.

3a: What was the balance in ending raw materials at December 31?

3b: What was the total manufacturing cost for December?

3c: What was the cost of the direct materials used by Basil in production?

3d: What was the ending balance in Basil’s Finished Goods Inventory account?

3a.

 Beginning balance, Raw materials inventory \$187,500 Add : purchases of raw materials 337,500 Less : Total raw materials used in production (406,250) Ending balance, Raw materials inventory \$118,750

3b.

 Direct materials used (\$406,250 - \$43,750) \$362,500 Direct labor 200,000 Factory overhead : Indirect materials used in production \$43,750 Indirect labor 150,000 Factory electricity 62,500 Depreciation on factory equipment 218,750 Insurance on factory building 50,000 Total Factory overhead 525,000 Total manufacturing costs \$1,087,500

3c. Direct materials used in production = Total raw materials used in production - Indirect materials used in production

= \$406,250 - \$43,750 = \$362,500

3d.

 Beginning balance, Finished goods inventory \$106,250 Add : Cost of goods manufactured 1,250,000 Less : Cost of goods sold (1,312,500) Ending balance, Finished goods inventory \$43,750

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