Question

Requirement 1. For a manufacturing company, identify the following as bither a product cost or a period cost a. Depreciation on plant equipment b. Depreciation on salespersons' automobiles C. Insurance on plant building d. Marketing manager's salary e. Direct materials used 1. Manufacturing overhead 9. Electricity bill for human resources office h. Production employee wages Requirement 2. Show how to compute cost of goods manufactured. Use the following amounts: direct materials used, $20,000: direct labor $10,000, manufacturing overhead, $22,000; beginning Work in Process Inventory. $29,000, and ending Work in Process Inventory, $9,000. Cost of Goods Manufactured Total Manufacturing Costs incurred during Period Total Manufacturing Costs to Account For Cost of Goods Manufactured Requirement 3. Using the results from Requirement 2, calculate the cost per unit for goods manufactured assuming 1,500 units were manufactured - Unit product cost Requirement 4. Beginning Finished Goods Inventory had 225 units that had a un cost of $45 each. Ending Finished Goods Inventory has 250 units left Using the results from Requirement 3. calculate cost of goods sold assuming FIFO Inventory coating is used. = Cost of Goods Sold

Answer 1

Answer is given below

Product Cost |Depreciation on plant equipment Period Cost Depreciation on salesman automobiles Product Cost Insurance on plant building Period Cost Marketing manager's salary Product Cost Direct material used Product Cost Manufacturing overhead Period Cost Electricity bill for Human resource office Product Cost Production employee wages $29,000 Cost of Goods Manufactured Opening Work in process Direct Material Direct Labor Manufacturing Overhead Total manufacturing cost incurred during Period Total manufacturing cost to account for Less: Closing Work in process Cost of Goods manufactured $20,000 $10,000 $22,000 $52,000 $81,000 $9,000 $72,000 Cost per unit of goods manufactured Cost of Goods manufactured Total units Unit Product Cost $72,000 1,500 $48.00 Schedule of Cost of Goods Sold Beginning Finished goods inventory Cost of Goods manufactured Total Cost of goods available for sale Closing Finished goods inventory Cost of Goods sold $10,125 (225*$45) $72,000 $82,125 $12,000 (250*$48) $70,125