Straightforward Manufacturing Statement ‘The following data pertain to the XY Company (in millions):

INVENTORIES 12eS hes 12/31/_4 Direct materials $9 $ 7 Work in process 4 3 Finished goods 10 13 MANUFACTURING COSTS INCURRED DURING 19_4 Direct materials used $20 Direct labor 13 Indirect manufacturing costs:
Indirect labor $ 5 Utilities 2 Depreciation—Plant and equipment 3 Other 6 16 Total a $49 . Prepare a statement of cost of goods manufactured and sold.
. Compare your statement with those in Exhibit 2-5. How does your statement differ from the Schedule of Cost of Goods Manufactured in Exhibit 2-5? . Compute the prime costs incurred during 19-4. Compute the conversion costs incurred during 19_4.
. What is the difference in meaning between the terms “total manufacturing costs incurred in 19_4” and “cost of goods manufactured in 19_4”? . Even though no T-accounts were shown in the chapter, draw a T-account for Work in Process. Enter the amounts shown on your financial statement into the T-account as you think they might logically affect Work in Process, assuming that the account was kept on a perpetual inventory basis. Use a single summary number of $16 million for entering any effects of the indirect manufacturing costs rather than entering the four individual amounts. lp1