The following events took place at a manufacturing company for the current year: (1) Purchased $95,800...

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Question

The following events took place at a manufacturing company for the current year: (1) Purchased $95,800...

The following events took place at a manufacturing company for the current year:

(1) Purchased $95,800 in direct materials.
(2) Incurred labor costs as follows: (a) direct, $56,800 and (b) indirect, $14,400.
(3) Other manufacturing overhead was $107,800, excluding indirect labor.
(4) Transferred 80% of the materials to the manufacturing assembly line.
(5) Completed 65% of the Work-in-Process during the year.
(6) Sold 85% of the completed goods.
(7) There were no beginning inventories.

What is the value of the ending Finished Goods Inventory?

$13,421.50.
$166,166.00.
$24,924.90.
$26,801.00.

business accounting

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Answer 1

Answer #1

Calculate value of ending finished goods inventory

direct material (95800*80%)	76640
Direct labor	56800
Indirect labor	14400
Other manufacturing overhead	107800
Total manufacturing cost	255640
Finished goods (255640*65%)	166166
Ending finished goods (166166*15%)	24924.90

So answer is c) $24924.90

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Answer 2

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The following events took place at a manufacturing company for the current year: (1) Purchased $95,800...

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