Managerial Accounting Problems



Managerial Accounting Problems

Problem 1 Answer

a) Calculate the cost of materials used.

 Beginning Materials Inventory

$5,600

Add: Purchases     

$7,400

Subtotal — Materials available      

$13,000

Less: Ending Material Inventory 

$4,200

 Cost of Materials Used 

$8,800

(b) Calculate the manufacturing costs incurred during the period.

 

 

Direct Material Used

$8,800

Direct Labor

$17,250

Mfg Overhead - 60% of DL

 

Depreciation on factory equipment

$6,750

Factory repairs and maintenance

$3,300

Total manufacturing cost

$36,100

(c) Calculate the Cost of Goods Manufactured during the period.

Beginning goods in process inventory

5,350

Add: Cost of goods manufactured

$36,100

 Total Manufacturing Costs   

$41,450

Less: Ending goods in process inventory

6,300

 Cost of Goods Manufactured   

$35,150

(d) Calculate the Cost of Goods Sold during the period.

 Beginning ...