Question

Manufacturing companies typically have one or more of the following three types of​ inventory: direct​ materials, work-in-process, and finished goods. The companies purchase materials and components and convert them into various finished goods. To be able to solve for the amounts required in this problem you need to understand the flow of inventory. Direct​ materials, direct labor and manufacturing overhead flow into​ work-in-process inventory as the units are being produced. When the units are completed the cost of the goods manufactured flow into finished goods. As inventory is sold the cost of goods sold flows to the income statement. Requirement 1. Calculate the cost of direct materials inventory 8 8​/31/ 2017 2017. Direct materials inventory are direct materials in stock and awaiting use in the manufacturing process. The ending balance for direct materials inventory is calculated by adding in purchases made during the period and subtracting out the materials that were used. Calculate the direct materials inventory value at 8 8​/31/ 2017 2017. Direct materials inventory 8/1/2017 $ 100 Direct materials purchased 330 Direct materials available for production 430 Direct materials used (390) Direct materials inventory 8/31/2017 $ 40 Requirement 2. Calculate the fixed manufacturing overhead costs for August August 2017 2017. Manufacturing overhead costs​ (also called indirect manufacturing​ costs) are all manufacturing costs that are related to the cost​ object, but cannot be traced to that cost object in an economically feasible way. Some examples include​ supplies, plant​ rent, and property taxes on the plant.​ Normally, we would add the fixed overhead and variable overhead costs to calculate the total overhead costs. In this case we will rearrange the formula and subtract variable costs from total overhead costs. Now calculate the fixed manufacturing overhead costs for August August. Total manufacturing overhead costs Less: Variable manufacturing overhead costs Fixed manufacturing overhead costs for August Enter any number in the edit fields and then click Check Answer.

Answer 1

Answer to Question 1
Calculation for Cost of Direct Material Inventory as on 31-Aug-2017
Particulars	Amount
Direct Material Inventory at the beginning of the month	100
Direct Material Inventory Purchased during the month	330
Direct Material Inventory Available for Production	430
Direct Material Inventory issued for Production	390
Direct Material Inventory at the end of the month	40

Answer to Question 2

in order to calculate Fixed Manufacturing overhead Cost, we have to arrive the following formula can be used.

Total Manufacturing overhead Cost (Less) Variable Manufacturing overhead Cost.

in the given case, we had arrived Variable Manufacturing overhead Cost, which is equal to the cost of material used for production during the moth of $390

However Total Manufacturing overhead Cost not mentioned anywhere throughout the question and without that the answer cannot be completed.