a) For June 30th of 2017, Company X reported raw materials balance of TL20,000, WIP balance of TL25,000 and finished goods balance of TL40,000 in its balance sheet. During July;
• Direct labor of TL254,000 and raw materials of TL350,800 was used.
• TL360,000 worth of raw materials was purchased.
• Manufacturing overhead used (exclusive of indirect materials) was equal to 60% of direct labor costs. At the end of July, sales totalled TL1,247,000 and gross profit was 40% of the sales. COGS available for sale equalled TL770,600. Calculate the balance of finished goods as of July 31st.
b) Company X applies MOH to jobs on the basis of machine hours used. MOH costs are expected to total TL300,700 for the year, and machine usage is estimated at 128,000 hours. For the year, TL322,800 MOH costs are incurred and 130,040 machine hours are used. Calculate the amount of COGS adjustment at year-end.
Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks! |
Company X | ||
Answer a | Amount TL | Note |
Sales | 1,247,000.00 | |
Less: Gross profit at 40% | 498,800.00 | |
Cost of goods sold | 748,200.00 | A |
COGS available for sale | 770,600.00 | |
Less: Cost of goods sold | 748,200.00 | See A |
Finished goods as of July 31st | 22,400.00 | B |
Answer b | ||
Predetermined overhead rate | Amount TL | |
Expected MOH costs | 300,700.00 | C |
Estimated machine usage | 128,000.00 | D |
Predetermined overhead rate | 2.35 | E=C/D |
Overhead applied in July | Amount TL | |
Actual machine usage | 130,040.00 | F |
Predetermined overhead rate | 2.35 | See E |
Overhead applied in July | 305,492.41 | G=F*E |
COGS adjustment | Amount TL | |
MOH costs incurred | 322,800.00 | |
Less: Overhead applied in July | 305,492.41 | See G |
Under applied | 17,307.59 | |
So the amount of COGS adjustment at year-end is $ 17,307.59. |
a) For June 30th of 2017, Company X reported raw materials balance of TL20,000, WIP balance...
Q-3) For June 30th of 2017, Company X reported raw materials balance of TL20,000, WIP balance of TL25,000 and finished goods balance of TL40,000 in its balance sheet. During July; • Direct labor of TL257,000 and raw materials of TL350,300 was used. TL360,000 worth of raw materials was purchased. Manufacturing overhead used (exclusive of indirect materials) was equal to 60% of direct labor costs. At the end of July, sales totalled TL1,247,000 and gross profit was 40% of the sales....
1. Brinkley Company has the following information available: Raw Materials, January 1 balance $ 12,000 Selling & Admin Cost (entire year) 75,000 Factory Utilities (entire year) 12,000 WIP, January 1, balance 21,000 Factory Supervisory Salaries (entire year) 35,000 Direct Labor (entire Year) 48,000 Factory Indirect Materials 11,000 Finished Goods, January 1 balance 16,000 Raw Materials, December 31 balance 38,000 Factory Depreciation (entire year) 13,000 Purchase of Raw Materials (entire year) 70,000 WIP, December 31, balance 25,000 Factory Indirect Labor (entire...
Rock It Out had the following account balances on January 1: Cash: $836,000 Raw Materials: $18,500 WIP: $115,400 Finished Goods Inventory $45,600 The following took place during the year: 1. Purchased raw material with cash $173,600. 2. Put material into production: $129,000 of direct material $12,000 of indirect material. 3. Paid payroll: $158,000 in wages to direct labor $93,000 salary for supervisors 4. Applied OH based on a pre-determined rate of $13 per machine hour. Actual machine hours were 9,950....
Raw materials inventory, beginning of year $21,000 Raw materials inventory, end of year 23,000 Work in process inventory, beginning of year 55,000 Work in process inventory, end of year 52,000 Finished goods inventory, beginning of year 42,000 Finished goods inventory, end of year 48,000 Raw materials purchased 110,000 Indirect Materials used 6,000 Indirect Labor used 33,000 Direct Labor used 210,000 Depreciation on Factory Machines 22,000 Amount spent on other manufacturing overhead 90,000 Direct labor hours used 15,000 Predetermined overhead rate ...
The Alpha Company makes specialty computers. To do so, it has the following information: RAW MATERIALS INVENTORY Beginning balance 10,000 USED 245,000 WORK IN PROCESS 35,000 TRANSFERRED FINISHED GOODS INVENTORY Beginning balance 30,000 COSTS OF GOODS MANUFACTURED COST OF GOODS SOLD COST OF GOODS SOLD Beginning balance PURCHASES 250,000 227,000 180,000 DIRECT MATERIALS DIRECT LABOR MOH APPLIED Ending balance Ending balance 15,000 37,000 Ending balance 23,000 Indirect materials Indirect labor Utilities Depreciation Taxes Other TOTAL MANUFACTURING OVERHEAD 8.000 MOH APPLIED...
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March Beginning Inventory Ending Inventory Raw materials Work in process Finished goods $33,000 25,000 60,000 $22,000 44,000 58,000 Additional information for the month of March follows Raw materials purchases Indirect materials used Direct labor Manufacturing overhead applied Actual manufacturing overhead costs Seliling, general, and administrative expenses Sales revenue $84,000 10,000 55,000 85,000 86,000 58,000 450,000 1. Calculate the DM used during...
Raw Materials Work In Process ????? ????? Balance 17,000 Purch 80.000 Balance 19,000 Balance 9,000 Materials ????? Labor 50,000 MOH 30,000 Balance 14,000 Finished Goods Factory Labor ????? 50,000 50,000 Balance 11,000 Trans in ????? Balance 8,000 Manufacturing Overhead Cost of Goods Sold 25,000 (Actual) ????? ????? Instructions: Calculate the items with red (?), and answer the following: Provide them in the space provided, identifying them numbered 1 - 4. 1. Raw materials used (all direct) 2. Jobs complete and...
TRUE OR FALSE A. True or False / When units are completed, costs are transferred out of WIP and into finished goods inventory. B True or False / When units are sold, costs are transferred out of finished goods inventory and into cost of goods sold (COGS). C True or False / MOH is increased by the purchase of indirect materials, indirect labor and costs to run the factory, and reduced by MOH applied to WIP. D. True or False...
Raw materials purchased $ 850 Beginning raw materials 40 Direct materials used 750 Indirect materials requested 30 Indirect labor 100 Utilities - administration area 90 Utilities - factory area 200 Rent - adminstration 100 Rent - factory 200 Taxes - administration 200 Taxes - factory 500 Other - factory 500 Other manufacturing overhead actual 75 Direct labor 250 Manufacturing overhead applied at 150% of direct costs 125% Beginning WIP 250 Ending WIP 125 Beginning finished good 20 Ending finished goods 15...
Work in Process (WIP) P April 30 RM purchases Raw Materials (RM) 42,000 180.000 222.000 April 30 Finished Goods (FG) 63.000 28.100 Indirect materials Indirect labor Factory Overhead 10,000 34.500 Cost of goods sold Other overhead costs 93,500 34.900 126.000 May 31 Underapplied OH 138.000 Income statement (partial) $ 0 JOD Order Cosury system. April 30 May 31 $ $42.000 9,100 63,000 56,000 19,700 34,900 Inventories Raw materials Work in process Finished goods Activities and information for May Raw materials...