Question

Score: 0 of 1 pt 10 of 10 (4 complete) HW Score: 40%, 4 of 10 pts P2-43A (similar to) Ξ Question Help deal Displays designs and manufactures displays used in mobile devices. Serious The beginning inventory numbers are as follows: flooding throughout the region affected Ideal Displays facilities. Inventory was EEB (Click the icon to view beginning inventory numbers.) completely ruined, and the company's computer system, including all accounting records, was destroyed. Requirement Determine the ending inventories of raw materials, work in process, and finished goods. Assume that Raw Materials Inventory contains only direct materials. (Click the icon to view additional information.) Start by determining the ending inventory of raw materials by calculating the direct materials used. Ideal Displays Calculation of Direct Materials Used For Current Year Plus: Less:

Answer 1

Answer:

A. Ending inventory of raw-materials is $ 77,000

B. Ending inventory of Work in Process is $ 440,000

C. Ending inventory of Finished goods is $ 80,000

Ideal Displays Calculation of Direct materials used For current year
Beginning raw material inventory	$ 94,000
Plus : Purchase of direct materials	530,000
Direct material available for sale	$ 624,000
Less: Ending raw-materials inventory	( 77,000)
Direct material used	$ 547,000

WorkingNotes :

1.Direct material used =

Total Manufacturing costs - (Beginning work in process + Direct labor + Manufacturing overhead)

= $ 1,492,000 - ( 206,000 + 531,000 + 208,000)

= $ 547,000

2. Ending raw-material inventory =

Direct materials available for sale - Direct Material used

= $ 624,000 - $ 547,000 = $ 77,000

3. Cost of Goods manufactured =

Cost of goods available for sale - Beginning inventory of finished goods

= $ 1,270,000 - 218,000 = $ 1,052,000

4. Ending inventory of Work in Process =

= Total Manufacturing costs account for - Cost of Goods manufactured

= ( Beginning work in process + Direct material used + Direct labor + Direct manufacturing overhead ) - Total cost of Goods manufactured

= $ (206,000 + 547,000 + 531,000 + 208,000) - $1,052,000

= $ 440,000

5. Ending inventory of Finished goods =

= Cost of goods available for sale - Cost of Goods sold

= Cost of goods available for sale - ( Sales - Gross profit )

= $ 1,270,000 - (1,700,000 - 30%) = $ 80,000