Assuming that the total manufacturing costs are 3400000 comp

Assuming that the total manufacturing costs are $3,400,000, compute the cost of goods manufactured using the information below.

Raw materials inventory, January 1                        $     30,000

Raw materials inventory, December 31                         60,000

Work in process, January 1                                            27,000

Work in process, December 31                                      18,000

Finished goods, January 1                                              60,000

Finished goods, December 31                                        48,000

Raw materials purchases                                           1,800,000

Direct labor                                                                   890,000

Factory utilities                                                             225,000

Indirect labor                                                                  75,000

Factory depreciation                                                     500,000

Operating expenses                                                       630,000

a.   $3,421,000.

b.   $3,391,000.

c.   $3,409,000.

d.   $3,142,000.

Barton Company has beginning work in process inventory of $144,000 and total manufacturing costs of $686,000. If cost of goods manufactured is $660,000, what is the cost of the ending work in process inventory?

a.   $150,000.

b.   $118,000.

c.   $190,000.

d.   $170,000.

129.   Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $490,000, what was the cost of raw materials purchased?

a.   $490,000.

b.   $520,000.

c.   $466,000.

d.   $514,000.

Solution

Calculate cost of goods Manufactured :

Cost of goods manufactured = Beginning work in process+Manufacturing cost-Ending work in process

= 27000+3400000-18000

Cost of goods manufactured = 3409000

so answer is c) $34,09,000

Calculate cost of the ending work in process inventory?

Cost of ending work in process inventory = Beginning work in process+manufacturing cost-cost of goods manufactured

= 144000+686000-660000

Cost of ending work in process inventory = 170000

so answer is d) $170,000

Calculate cost of raw materials purchased?

Cost of material purchased = Ending raw material inventory+direct material used-beginning raw material inventory

= 120000+490000-96000

Cost of material purchased = 514000

so answer is d) $514000