XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 37,000 50,000 Work in process 38,000 41,000 Finished goods 22,000 34,000 The following information was taken from XYZ Company's accounting records for 2020: Sales revenue ........................................... $630,000 Direct materials purchased .............................. ? Depreciation, factory equipment ......................... 34,000 Prime costs ............................................. 250,000 Utilities (60% for factory; 40% for office building) .... 20,000 Sales commissions ....................................... 29,000 Indirect materials ...................................... 25,000 Depreciation, office equipment .......................... 30,000 Rent, factory building .................................. 56,000 Direct labor ............................................ ? Advertising ............................................. 75,000 Production supervisor's salary .......................... 81,000 Additional information: 1. Direct labor comprised 35% of the conversion costs for 2020. 2. The actual overhead cost for 2020 was equal to the overhead applied to production. Thus there was no overhead variance for 2020. Calculate the direct materials purchased by XYZ Company in 2020.
Computation of direct materials purchased is:
Direct materials purchased = Direct material used + Direct material at the ending - Direct material at the beginning
= $138,000 + $50,000 - $37,000
= $151,000
Hence, the direct materials purchased is $151,000.
Working Notes:
1.
Computation the amount of factory utilities is:
Amount of factory utilities = Total amount of utilities * Percentage of factory utilities
= $20,000 * 0.60
= $12,000
Hence, the amount of factory utilities is $12,000.
2.
Computation of total overhead is:
Total overhead = Amount of depreciation + Amount of factory utilities + Indirect materials + Rent of factory building + Salary of supervisor
= $34,000 + $12,000 + $25,000 + $56,000 + $81,000
= $208,000
Hence, the total overhead is $208,000
3.
Computation of direct labor is:
Amount of direct labor = (Total overhead * Percentage of conversion costs) / (1 - Percentage of conversion costs)
= ($208,000 * 0.35) / (1 - 0.35)
= $72,800 / 0.65
= $112,000
Hence, the direct labor is $112,000.
4.
Computation of direct material used is:
Direct material used = Prime costs - Amount of direct labor
= $250,000 - $112,000
= $138,000
Hence, the direct material used is $138,000.
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020...
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 37,000 50,000 Work in process 38,000 41,000 Finished goods 22,000 34,000 The following information was taken from XYZ Company's accounting records for 2020: Sales revenue ........................................... $630,000 Direct materials purchased .............................. ? Depreciation, factory equipment ......................... 34,000 Prime costs ............................................. 250,000 Utilities (60% for factory; 40% for office building) .... 20,000 Sales commissions ....................................... 29,000 Indirect materials ...................................... 25,000...
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 37,000 50,000 Work in process 38,000 41,000 Finished goods 22,000 34,000 The following information was taken from XYZ Company's accounting records for 2020: Sales revenue ........................................... $630,000 Direct materials purchased .............................. ? Depreciation, factory equipment ......................... 34,000 Prime costs ............................................. 250,000 Utilities (60% for factory; 40% for office building) .... 20,000 Sales commissions ....................................... 29,000 Indirect materials ...................................... 25,000...
XYZ Company recorded the following information related to their invento гу accounts for 2020: Direct materials Work in process Finished goods January 1, 2020 37,000 38,000 22,000 December 31, 2020 50,000 41,000 34,000 The following information was taken from XYZ Company's accounting recor for 2020: $630,000 Sales revenue Direct materials purchased .... Depreciation, factory equipment ...... Prime costs ....... Utilities (60% for factory; 40% for office building) Sales commissions Indirect materials ....... Depreciation, office equipment Rent, factory building Direct Labor...
Question 8 XYZ Company recorded the following information related to their inventory accounts for 2020: Direct materials Work in process Finished goods January 1, 2020 37,000 38,000 22,000 December 31, 2020 50,000 41,000 34,000 O 90 The following information was taken from XYZ for 2020: $630,000 Sales revenue .... Direct materials purchased .. Depreciation, factory equipment Prime costs ...... Utilities (60% for factory; 40% for office building) .. Sales commissions Indirect materials .. Depreciation, office equipment .. Rent, factory building...
Question 8 4.5 pts XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 37,000 38,000 22,000 December 31, 2020 Direct materials 50,000 41,000 34,000 Work in process Finished goods The following information was taken from XYZ Company's accounting records for 2020: Sales revenue $630,000 Direct materials purchased Depreciation, factory equipment Prime costs... Utilities (60% for factory; 40% for office building) ? 34,000 250,000 20,000 29,000 25,000 30,000 56,000 Sales commissions Indirect materials Depreciation,...
Question 8 4.5 pts XYZ Company recorded the following information related to their inventory accounts for 2020: Direct materials Work in process Finished goods January 1, 2020 37,200 38,000 22,000 December 31, 2020 50,000 41,000 34,000 The following information was taken from XYZ Company's accounting records for 2020: $630,000 Sales revenue ..... Direct materials purchased Depreciation, factory equipment Prime costs .... Utilities (60% for factory; 40% for office building) Sales commissions Indirect materials ...... Depreciation, office equipment Rent, factory building...
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 50,000 37,000 Work in process 38,000 41,000 Finished goods 32,000 34,000 The following costs were taken from XYZ Company's accounting records for 2020: Direct materials purchased .............................. $129,000 Depreciation, factory equipment ......................... 37,000 Sales revenue ........................................... 590,000 Utilities (60% for factory; 40% for office building) .... 30,000 Sales commissions ....................................... ? Indirect materials ...................................... 29,000 Depreciation, office equipment .............................
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 50,000 37,000 Work in process 38,000 41,000 Finished goods 32,000 34,000 The following costs were taken from XYZ Company's accounting records for 2020: Direct materials purchased .............................. $129,000 Depreciation, factory equipment ......................... 37,000 Sales revenue ........................................... 590,000 Utilities (60% for factory; 40% for office building) .... 30,000 Sales commissions ....................................... ? Indirect materials ...................................... 29,000 Depreciation, office equipment .............................
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 50,000 37,000 Work in process 38,000 41,000 Finished goods 32,000 34,000 The following costs were taken from XYZ Company's accounting records for 2020: Direct materials purchased .............................. $129,000 Depreciation, factory equipment ......................... 37,000 Sales revenue ........................................... 590,000 Utilities (60% for factory; 40% for office building) .... 30,000 Sales commissions ....................................... ? Indirect materials ...................................... 29,000 Depreciation, office equipment .............................
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 50,000 37,000 Work in process 38,000 41,000 Finished goods 32,000 34,000 The following costs were taken from XYZ Company's accounting records for 2020: Direct materials purchased .............................. $129,000 Depreciation, factory equipment ......................... 37,000 Sales revenue ........................................... 590,000 Utilities (60% for factory; 40% for office building) .... 30,000 Sales commissions ....................................... ? Indirect materials ...................................... 29,000 Depreciation, office equipment .............................