Problem

Cost of Goods Manufactured; Prime and Conversion CostsMarco Polo Map Company's cost of...

Cost of Goods Manufactured; Prime and Conversion Costs

Marco Polo Map Company's cost of goods sold for March was $345,000. March 31 work-in-process inventory was 90 percent of March 1 work-in-process inventory. Manufacturing overhead applied was 50 percent of direct-labor cost. Other information pertaining to the company's inventories and production for the month of March is as follows:

Beginning inventories, March 1:

 

Raw material

$17,000

Work in process

40,000

Finished goods

102,000

Purchases of raw material during March

113,000

Ending inventories, March 31:

 

Raw material

26,000

Work in process

?

Finished goods

105,000

Required:

1.     Prepare a schedule of cost of goods manufactured for the month of March.

2.     Prepare a schedule to compute the prime costs (direct material and direct labor) incurred during March.

3.     Prepare a schedule to compute the conversion costs (direct labor and manufacturing overhead) charged to work in process during March.

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