Cocoa Confections provides you with the following information for the most recent year of operations. The firm informs you that manufacturing overhead equals 150% of direct labor costs.
Direct materials beginning inventory ........................................$90,000
Direct materials ending inventory ........................................... $75,000
Beginning WIP inventory .................................................... $80,000
Ending WIP inventory ....................................................... $100,000
Beginning FG inventory .................................................... $125,000
Ending FG inventory ........................................................ $175,000
Direct materials issued to production ..................................... $200,000
Total manufacturing costs charged to production
= direct materials issued to production
+ direct labor cost + manufacturing overhead. ...........................$900,000
Revenues ..................................................................... $1,250,000
Selling and Administrative costs ...........................................$265,000
Required:
Calculate
a. The cost of direct materials purchased.
b. Direct labor costs.
c. Manufacturing overhead costs.
d. Prime costs.
e. Conversion costs.
f. Cost of goods manufactured.
g. Cost of goods sold.