32 Ex06165 0 Instruction Cost of direct materials placed in

32. Ex.06-165 0 Instruction Cost of direct materials placed in production Cost of finished goods available for sale Cost of direct materials available for use Costs of good manufactured Costs of goods sold Direct labor Direct materials inventory, December 31 Direct materials inventory, January 1 Direct materials purchases Factory overhead Finished goods inventory, December 31 Finished goods inventory, January 1 Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $39,000, $33,00, and $27,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $42,000, $35,000, and $21,000, respectively. Direct material purchases were $575,000, direct labor was $212,000 for the year, and factory overhead was $156,0o0. Required: Prepare a cost of goods sold budget for Sieep Tight, Inc. Refer to the Eists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries Less\"or Plus will automaticaly appear if it is required. Be sure to complete the stafement heading. Total work in process during the period Work in process inventory, December 31 Work in process inventory, January 1 (Label) 33. MC.04-106 Bryce Co. sales are $914,000, variable costs are $498,130, and operating income is $196,0o0. what is the contribution margin ratio? a. 54.5% b. 45.5% c. 28.4% d. 52.2% @ , @ 34. MC.04-98

Solution

Direct Materials Inventory, January 1 27000 Add : Direct Materials Purchases 575000 Cost of Direct Materials available for use 602000 Less : Direct Materials Inventory, January 31 21000 Cost of Direct Materials placed in production 581000 Direct Labor 212000 Add : Work In Process Inventory, January 1 33000 Add :Factory Overhead 156000 Total Work In process during the period 982000 Less : Work in Process Inventory, January 31 35000 Cost of goods manufactured 947000 Total Manufacturing Costs 947000 Add : Finished goods Inventory, January 1 39000 Cost of Finished goods available for sale 986000 Less : Finished goods Inventory, January 31 42000 Cost of goods sold 944000