Question

KHI Cn 123 Save Help Save & Exit Submit 5 The controller at Lawrence Components asks for your help in sorting out some cost information. She is called to a meeting, but hands you the following information for April Prime costs, April Total manufacturing costs, April Cost of goods manufactured, April Cost of goods sold, April Direct materials inventory, April 30 Work-in-process inventory, April 1 Finished goods inventory, April 30 Direct materials purchased, April Direct labor costs, April $ 150,000 268,000 263,000 221,000 15,700 9,300 78,000 74,000 55,000 Required: a. Compute the direct material used for the month of April. b. Compute the direct material inventory as of April 1. c. Compute the conversion cost for the month of April. d. Compute the work-in-process inventory as of April 30. e. Compute the manufacturing overhead for the month of April. f. Compute the finished goods inventory as of April 1. a. Direct material used b. Direct materials inventory c. Conversion cost d. Work-in-process inventory Manufacturing overhead f. Finished goods inventory e

Answer 1

a.	Direct Material Used=	$   95,000
b.	Direct Material Inventory as of April 1=	$   36,700
c.	Conversion Cost=	$ 173,000
d.	Work in process Inventory as of April 30=	$   14,300
e.	Manufacturing OH=	$ 118,000
f.	Finished goods Inventory as of April 1=	$   36,000

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$ 95,000 Lawrence Components Schedule of Cost of Goods Sold For the Year Ended April 30, Direct materials: Direct Material Inventory, April 1 $ 36,700 Direct Materials Purchases $ 74,000 Total Direct Materials use $110,700 Less: Direct Material Inventory, April 31 $ 15,700 Direct Materials used Direct Labor $ 55,000 Manufacturing Overhead $ 118,000 Conversion Cost Total Manufacturing Costs Work-in-process Inventory, April 1 Less: Work-in-process Inventory, April 30 Cost of goods manufactured Finished goods Inventory, April 1 Cost of goods available for sale Less:Finished goods Inventory, April 30 Cost of goods sold $ 173,000 $268,000 $ 9,300 $ 14,300 $263,000 $ 36,000 $ 299,000 $ 78,000 $221,000

a. b. C. Direct Material Used= Direct Material Inventory as of April 1= Conversion Cost= Work in process Inventory as of April 30= Manufacturing OH= Finished goods Inventory as of April 1= Prime Cost - Direct Labor cost Direct Material Used+Ending DM+Purchases Total manufacturing cost - Direct Material used Total manufacturing cost + Beginning WIP-COGM Conversion Cost - Direct Labor COGS+Ending FG - COGm ($150,000-55,000] $ 95,000 [$95,000+15,700-74,000] $ 36,700 [$268,000-95,000] $ 173,000 [$268,000+9,300-263,000] $ 14,300 ($173,000-55,000] $ 118,000 [$221,000+78,000-263,000] $ 36,000 d. e.

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