4 Manufacturing Costs. Information concerning Westmack Company’s manufacturing activities for December follows: LO1 Finishedgoods.

Direct materials.

Directlabor.

Machinetime.

I Work in process.

Direct materials, $2.40 per unit Direct labor, $.80 per unit Machinetime.

Materials.

Inventories December 1 December 31

$12,000

$5,000

$3,000 60 hours 3,000 units 2,000 units 48 hours 32 hours

$ 9,000

$4,500 Total December manufacturing cost was $180,000, of which $30,000 was direct labor cost. A total of 600 machine hours were used in the month. Westmack uses a predetermined overhead rate of $100 per machine hour to assign factory overhead to work in process and finished goods inventories. Materials purchased in December were $84,000 and freight-in on these purchases totaled $1,500.

Required: Compute the following:

(1) Materials used in December

(2) Work in process at December 31

(3) December cost of goods manufactured

(4) Finished goods at December 31

(5) December cost of goods sold