Question

XYZ Company reports the following inventory data for the month of June.

	June 1	June 30
Direct materials	$ 50.00	$ 80.00
Work in process	$140.00	$180.00
Finished goods	$240.00	$250.00

Direct materials purchased	$140.00	Indirect costs of production	$180.00
Direct costs of production	$220.00	Selling and administrative costs	$210.00

Answer the following questions about XYZ Company for the month of June:

a) What was the total manufacturing cost (product cost) incurred in June? $

b) What was the cost of direct materials used in production in June? $

c) What was the direct labour cost in June? $

d) What was the total manufacturing overhead costs in June?

e) What was the fixed manufacturing overhead cost in June? $

f) What was the cost of goods manufactured in June? $

g) What was the cost of goods sold in June? $

h) What were the prime costs in June? $

i) What were the conversion costs in June? $

j) What were the period costs in June? $

k) If the sales revenue in June was $950, what was XYZ's operating income before taxes? $

Answer 1

Answer to Requirement a.

Total Manufacturing Cost = Direct Cost of Production + Indirect Cost of Production
Total Manufacturing Cost incurred in June = $220.00 + $180.00
Total Manufacturing Cost incurred in June = $400.00

Answer to Requirement b.

Cost of Direct Materials used = Beginning Direct Materials + Direct Materials purchased – Ending Direct Materials
Cost of Direct Materials used in Production in June = $50.00 + $140.00 - $80.00
Cost of Direct Materials used in Production in June = $110.00

Answer to Requirement c.

Direct Cost of Production = Direct Materials + Direct Labor
$220.00 = $110.00 + Direct Labor Cost in June
Direct Labor Cost in June = $110.00

Answer to Requirement d.

Total Manufacturing Cost = Direct Materials + Direct Labor + Manufacturing Overhead
$400.00 = $110.00 + $110.00 + Manufacturing Overhead Cost in June
Manufacturing Overhead Cost in June = $180.00

Answer 2

XYZ company reports £200,000 Cash provided by operating activities 110,000 Cash used by investing activities 140,000 Cash provided by financing activities 90,000 Beginning cash balance 2What is XYZ's ending cash balance