Question

Simple problems. Corrections for all problems please!

Anderson Inc. issued $171,950 in raw materials to production (of the $171,950, $30,491 were not traceable to specific jobs). The credit to Raw Materials Inventory would be ?

171950-30491 is wrong

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Anderson Inc. issued $162,930 in raw materials to production (of the $162,930, $35,420 were not traceable to specific jobs). The debit to Work in Process would be ?

162930 is wrong

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Parker Company makes custom chef aprons. Parker has the following costs in its manufacturing company related to labor.

Wages paid to seamstresses	$12,873
Wages paid to sales team	15,473
Wages paid to cutters	11,766
Wages paid to the seamstress supervisor	16,721
Office manager’s salary	18,050
Sales Commissions	5,260

What are Parker Company's direct labor costs?

12873 is wrong

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Kawhi, Inc., which uses a volume-based cost system, produces cat condos, and has a gross profit margin of 68%. Direct materials cost $19 per unit, and direct labor costs $23 per unit. Manufacturing overhead is applied at a rate of 140% of direct labor cost. Nonmanufacturing costs are $13 per unit.

How much does each cat condo sell for?

19 + 23 + 23*1.4 is 74.20 then 74.20 *.68 is 50.456 then 74.20+50.456 is wrong

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Ginobili Corp has the following information:

	Beginning Inventory (1/1)			Ending Inventory (12/31)
Raw  Materials Inventory	$	24,421		$	22,877
Work in Process Inventory	$	10,077		$	9,013
Finished  Goods Inventory	$	16,679		$	19,957

Additional information for the year is as follows:

Raw materials purchases	$	56,387
Direct labor	$	44,554
Manufacturing overhead applied	$	45,362
Indirect materials	$	2,452

Compute the cost of goods manufactured.

24421+56387-22877+44554+45362+10077-9013 is wrong

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Ginobili Corp has the following information:

	Beginning Inventory (1/1)			Ending Inventory (12/31)
Raw  Materials Inventory	$	20,605		$	21,546
Work in Process Inventory	$	11,874		$	9,354
Finished  Goods Inventory	$	15,397		$	17,897

Additional information for the year is as follows:

Raw materials purchases	$	56,222
Direct labor	$	43,238
Manufacturing overhead applied	$	47,167
Indirect materials	$	2,125

Compute the direct materials used in production.

56222+20605-21546 is wrong

Answer 1

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Anderson Inc.

The credit to Raw Materials Inventory would be $ 171,950.

Anderson Inc.

The debit to Work in Process would be $ 162,930- $ 35,420= $ 127,510.

Parker Company	Amount $
Wages paid to seamstresses	12,873.00
Wages paid to cutters	11,766.00
Wages paid to the seamstress supervisor	16,721.00
Direct labor costs	41,360.00
Kwahu, Inc.	Amount $
Direct materials cost	19.00
Direct labor cost	23.00
Manufacturing overhead at 140%	32.20
Manufacturing cost per unit	74.20
Gross profit margin	68%
Sell price ((74)/(100%-68%))	231.88

Ginobili Corp
Cost of goods manufactured statement	Amount $	Amount $	Amount $
Work in process inventory, Jan 1			10,077.00
Cost of direct materials used in production
Materials inventory, Jan 1	24,421.00
Raw material Purchases	56,387.00
Cost of materials available for use	80,808.00
Less: Materials inventory, Dec 31	(22,877.00)
Less: Indirect Materials	(2,452.00)
Cost of direct materials used in production		55,479.00
Direct Labor		44,554.00
Manufacturing Overhead applied		45,362.00
Total Manufacturing costs incurred			145,395.00
Total cost of work in process			155,472.00
Less: Work in process inventory, Dec 31			(9,013.00)
Cost of goods manufactured			146,459.00