Question

Tableau DA 14-2: Exercise, Cost classification and current assets section of balance sheet LO C2, P2

You have been asked by the CEO of Mountaineer Co. to assist in analyzing product costs. This analysis is used in internal decision making and in reporting to investors. The following Tableau Dashboard provides data needed for the analysis. Raw Materials Inventories Raw materials, beginning Raw materials purchases Raw materials used Raw materials, ending $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 Work in Process & Finished Goods Inventories Work in Process Finished Goods Rent expense - Factory $50,000 54,000 50,000 $40,000 43,000 Repairs expense - Factory $30,000 33,000 Factory supplies used indirect materials) Factory utilities $20,000 $10,000 $0 Beginning Ending Beginning Ending Indirect labor Additional Data Accounts receivable, net $150,000 Cash $350,000 Direct labor $180,000

Answer 1

Direct Material:
Raw material inventory Beginnning	$60,000
Raw material Purchases	$140,000
Raw materials available for use	$200,000
Less: Raw material inventory Ending	($64,000)
Direct materials used		$136,000
Direct Labor		$180,000
Total Prime Costs		$316,000
Direct Labor		$180,000
Factory Overhead
Rent Expenses- Factory	$ 45,000.00
Factory Utilities	$   9,500.00
Indirect  labor	$ 38,000.00
Repair Expenses - Factory	$ 11,500.00
Indirect Material	$ 14,000.00
Total Factory overhead costs		$ 118,000.00
Total Conversion Costs		$298,000.00