Question

PRODUCT COST FLOWS. Use the following information to answer all parts of the question.

Materials Inventory
	15*
	?	25
	10**

Work-in Process Inventory
	10*
	?	35
	28
	14
	42**

Finished Goods Inventory
	30*	55
	?
	10**

Wages Payable
		50
		28

Manufacturing Overhead
	12	14
		2**

* Beginning Balance

** Ending Balance

Required

a. Cost of goods completed and transferred

?

b. Total manufacturing costs

?

c. Cost of goods manufactured

?

d. Cost of goods sold

?

e. Direct labor used

?
f. Overhead applied

?

g. Overhead incurred

?

h. Raw materials purchased

?

i. Raw materials used

?

j. Over-applied overhead



k. Under-applied overhead

Answer 1

Direct Materials
Beginning Raw Materials Inventory	a	15
Add: Purchases of raw materials	b	10
Deduct: Ending Raw Materials Inventory	c	10
Direct Materials used in production	d = a + b – c	15
Direct Labor	e	42
Manufacturing Overhead	f	1212
Total Manufacturing costs	g = d + e + f	1269
Add: Beginning WIP Inventory	h	30
Deduct: Ending WIP Inventory	i	42
Cost of Goods Manufactured for the Year	j = g + h – i	1257
Add: Beginning Finished Goods Inventory	k	30
Deduct: Ending Finished Goods Inventory	l	10
Cost of Goods Sold	m = j + k – l	1277

answers

a) 1257

b) 1269

c) 1257

d) 1277

e) 28

f) 1212

g) 1214

h) =25-10 = available - initial inventory= 10

I) 15+10-10 =15 initial inventory + purchases - final inventory

j) 0

k) 2 it left to aply the diffence between 1214 incurred -1212 applied