Question

w year-end in Balances: Direct Materials Work-in-Process Inventory Finished Goods Inventory Other information: Depreciation, plant building and equipment Direct materials purchases Insurance on plant Sales salaries Repairs and maintenance-plant Indirect labor Beginning Ending prepare a sch ct cost if Davis 58,000 30,000 67,000 48,000 101,000 information to 46,000 Sche $ 20,000 159,000 22,000 43,000 11,000 30,000 or enter any nu Print Done

Answer 1

Solution 1:

Davis, Corp.
Schedule of cost of goods manufactured
Year ended December 31, 2018
Work in process inventory, Beginning			$1,01,000
Direct Materials used:
Direct Materials inventory, Beginning	$58,000
Add: Purchases of Materials	$1,59,000
Cost of material available for use	$2,17,000
Less: Direct Material Inventory, Ending	$30,000
Direct material used		$1,87,000
Direct Labor cost		$0
Manufacturing Overhead:
Indirect Labor	$30,000
Depreciation, Plant building and Equipment	$20,000
Insurance on plant	$22,000
Repair and Maintenance - Plant	$11,000
Total Manufacturing Overhead		$83,000
Total Manufacturing Costs Incurred during the year			$2,70,000
Total Manufacturing Costs to account for			$3,71,000
Less: Work in process inventory, ending			$67,000
Cost of goods manufactured			$3,04,000

Note: Since direct labor cost is not given in question, therefore, considered as $0.

Solution 2:

Unit Product cost = Cost of Goods manufactured / Lamps Manufactured = $304,000 / 2160 = $140.74 (rounded to 2 decimals).