heip 1000 points 16000 11400 inventory Solution Case 1 Case

heip 10.00 points 16.000 11.400 inventory

Solution

Case 1 Case 2 Case 3 Direct Material Used            16,000            8,167          11,400 Direct Labor            14,000            7,333            6,840 Manufacturing Overhead Applied            21,000          11,000          10,260 Total Current Manufacturing Costs            51,000          26,500          28,500 Beginning Work in Process Inventory              8,400          30,800            7,400 Ending Work in Process Inventory              5,300            9,300          10,899 Cost of Goods Manufactured            54,100          48,000          25,001 Beginning Finished Goods Inventory              4,300          11,000          16,199 Ending Finished Goods Inventory              8,600          20,000            5,200 Cost of Goods Sold            49,800          39,000          36,000 Case 1. Manufacturing Overhead Applied = $14,000 (Direct Labor) X 150% = $21,000 Total Current Manufacturing Costs = $16,000 + $14,000 + $21,000 = $51,000 Cost of Goods Manufactured = $51,000 (Manufacturing Costs) + $8,400 (Beginning WIP - $5,300 (Ending WIP) Cost of Goods Manufactured = $54,100 Cost of Goods Sold = $54,100 (COGM) + $4,300 (Beginning FG Inventory) - $8,600 (Ending FG Inventory) Cost of Goods Sold = $49,800 Case 2. Direct Labor = $11,000 (Manufacturing Overhead) / 150% = $7,333 Direct Material = $26,500 (Manufacturing Cost) - ($7,333 + $11,000) = $8,167 Beginning WIP = $48,000 (COGM) + $9,300 (Ending WIP) - $26,500 (Manufacturing Costs) = $30,800 Ending Finished Goods Inventory = $48,000 (COGM) + $11,000 (Beginning FG) - $39,000 (COGS) = $20,000 Case 3 Ending WIP = $28,500 (Manufacturing Costs) + $7,400 (beginning WIP) - $25,001 (COGM) = $10,899 Beginning Finished Goods Inventory = $36,000 (COGS) + $5,200 (Ending FG) - $25,001 (COGM) = $16,199