Question

Exercise #5: Conceptos Básicos de la Contabilidad Gerencial asic Concepts of mongement accounting In its production of pants, a company incurs the following costs: $13,525 for production workers, 57,515 for fabric, $2.532 for electricity in production facilities, and $415 for buttons Calculate the following: a. Prime costs b. Conversion costs Exercise #6: Conceptos Básicos de la Contabilidad Gerencial Basic Corapts of management accounting As of January 1, 2015, KudosCup Co. had a balance of $16,824 for raw materials inventory. The company's ending balance of raw materials inventory totaled $13,900. Every four months, the company purchases 250 pounds of raw materials at $25 a pound. Calculate the cost of direct materials used for the year. Exercise #7: Conceptos Básicos de la Contabilidad Gerencial (Basic Concapts of management accounting) Kudos Cup Co, also incurred $11,050 for factory overhead and 250 hours of direct labor at $10,30 per hour. Using the cost of direct materials used calculated in Exercise 6; determine the total manufacturing costs incurred for the year. Exercise #8: Conceptos Básicos de la Contabilidad Gerencial Cesc Conapts of management accounting) As of January 1, 2015, Kudos Cup Co.'s work in process inventory had a beginning balance of 588,731. The ending balance of work in process inventory totaled 593,333. Using the information calculated in Exercise 7, calculate the cost of goods manufactured for the year.

Answer 1

	Exercise5
	a	Prime Cost =Direct Material +Direct Labor Costs
		Direct Material Costs:
		Fabric	$7,515
		Buttons	$415
		Total Direct Materials Cost	$7,930
		Direct Labor Costs:	$13,525
		Prime Cost =7930+13525	$21,455
	b	Conversion Costs
		Electricity	$2,532
		Conversion Costs	$2,532
	Exercise6
	A	Beginning Raw Materials Inventory	$16,824
	B	Raw Materials Purchase	$18,750	($25*250*3)
	C=A+B	Total Raw Materials available	$35,574
	D	Ending Raw Materials Inventory	$13,900
	E=C-D	Cost of direct materials used	$21,674
	Exercise 7
		Direct materials	$21,674
		Direct Labor	$2,575	(250*10.30)
		Factory Overhead	$11,050
		Total Manufacturing Cost	$35,299
	Exercise 8
	A	Beginning Work in Process	$88,731
	B	Manufacturing costs incurred	$35,299
	C	Ending work in process	$93,333
	D=A+B-C	Cost of goods manufactured	$30,697