Question

Question 12 The following costs and inventory data were taken from the accounts of Simon Company for 2019: January 1, December 31, 2019 2019 Inventories: Raw materials $ 8,000 $ 7,000 Work in process 15,000 13,000 Finished goods 16,000 12,000 Costs incurred: Raw materials purchases $ 98,000 Direct labor 42,000 Factory rent 8,000 Factory utilities 10,000 Indirect materials 6,000 Indirect labor 9,000 Operating expenses 17,000 Prepare a schedule showing the amount of direct materials used in production during the year Study S

Answer 1

Amount of direct materials used: Raw materials Inventory, January 1 2019 Add:Raw materials purchase Raw materials avaliable for use Less:Raw materials inventory December 31 2019 Direct materials used $ $ $ $ $ 8,000 98,000 1,06,000 7.000 99,000 Calcualtion of manufacturing overhead: Factory rent Factory Utillities Indirect Materials Indirect labour Total manufacturing overhead $ $ $ $ 8,000 10,000 6,000 9,000 33.000 $ $ 99,000 $ 42,000 Statement of cost of goods manufactured Direct materials: Raw materials Inventory, January 1 2019 $ 8,000 Add:Raw materials purchase $ 98,000 Raw materials avaliable for use $ 1,06,000 Less:Raw materials inventory December 31 2019 $ 7,000 Direct materials used Direct labour Manufacturing overhead Factory rent $ 8,000 Factory Utillities $ 10,000 Indirect Materials $ 6,000 Indirect labour $ 9.000 Total manufacturing overhead Total manufacturing costs Add:Work in process Inventory, January 1 2019 Total cost work in process Less:Work in process Inventory, December 31 2019 Cost of good manufactured $ 33,000 $ 1,74,000 $ 15,000 $1,89,000 $ 13,000 $ 1,76,000 $ $ Income statement(partial ) Finished goods Inventory, January 1 2019 Add:Cost of manufactured Cost of good avaliable for sale Less:finished goods inventory December 31 2019 Cost of good sold $ 16,000 1,76,000 1,92.000 12,000 2,04,000 $ $