Question

Use the following information to answer Q17-20 X Company's beginning and ending inventories for the month of November were as follows: November 1 November 30 Raw Materials $67,000 $62,000 Work in Process $145,000 $171,000 Finished Goods $85,000 $78,000 Production data for month follow: Direct labor cost incurred $200,000 Actual manufacturing overhead cost incurred $132,000 Raw materials purchased (all direct) $165,000 X applies manufacturing overhead cost to jobs at the rate of 70% of direct labor cost incurred. X Company had the following additional information for November: Administrative salaries, $117,000; Selling costs, $119,000; Selling, general, and administrative related depreciation of $7,000 and Sales of $800,000. X Company's total manufacturing cost for November was: Question 6 options: $502,000 $510,000 $363,000 $495,000

X Company’s net operating income for November was:

$ 75,000

$ 64,000

$ 58,000

$ 74,000

Answer 1

X COMPANY'S TOTAL MANUFACTURING COST

Answer: $510,000

Particulars	$
Beginning Raw materials	67,000
Add: Raw materials purchased	165,000
Less: Ending Raw materials	62,000
Raw materials Used	170,000
Direct labor cost	200,000
Manufacturing overhead cost applied ($200,000 * 70%)	140,000
Total Manufacturing Costs	510,000

X COMPANY'S NET OPERATING INCOME

Answer: $74,000

Income Statement

Particulars	$	$
Sales		800,000
Less: Cost of goods sold
Beginning Finished goods Inventory	85,000
Add: Cost of goods manufactured	484,000
Less: Ending Finished goods Inventory	78,000
Unadjusted cost of goods sold		491,000
Less: Overapplied Manufacturing overhead		8,000
Adjusted Cost of goods sold		483,000
Gross Profit		317,000
Less: Operating Expenses
Administrative Salaries	117,000
Selling costs	119,000
Depreciation	7,000
Total Operating expenses		243,000
Net Operating Income		74,000

Working Notes:

Particulars	$
Beginning Raw materials	67,000
Add: Raw materials purchased	165,000
Less: Ending Raw materials	62,000
Raw materials Used	170,000
Direct labor cost	200,000
Manufacturing overhead cost applied ($200,000 * 70%)	140,000
Total Manufacturing Costs	510,000
Add: Beginning work in process	145,000
Less: Ending work in process	171,000
Cost of goods manufactured	484,000

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