Question

The following T-accounts record the operations of Sheffield Co.: Assume all raw materials are direct materials. Beginning Balance Raw Materials 30,000 ? 249,000 16,000 Ending Balance Beginning Balance Direct Material Direct Labor Overhead Work in Process 38,000 ? 165,000 ? ? Ending Balance 25,000 Beginning Balance COGM Finished Goods 42,000 ? 644,000 15,000 Ending Balance

Answer 1

a) Computation of Direct Materials purchased Ending Balance, Direct Materials add: Transferred to Work in Progress less: Beginning Balance, Direct Materials Direct Material purchased $ $ $ $ 16,000 249,000 -42,000 223,000 b) Computation of Cost of Goods manufactured Ending Balance, Finished Goods add: Finished Goods transferred less: Beginning Balance, Finished Goods Cost of Goods manufactured $ $ $ $ 15,000 644,000 -42,000 617,000 c) Total Manufacturing Overhead cost Ending Balance, Work in Process add: Cost of Goods Manufactured less: Direct Material less: Direct Labor less: Beginning Balance, Work in Process Total Manufacturing Overhead cost $ $ $ $ $ $ 25,000 617,000 -249,000 -165,000 -38,000 190,000 d) Total Manufacturing Cost for the period $ 644,000

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