Refer to the schedule of cost of goods manufactured prepared for Superior Metals Corporation in the preceding problem.

Required:

1. How much of the manufacturing costs incurred during 20x4 remained associated with work-inprocess inventory on December 31, 20x4?
2. Suppose the company had increased its production in 20x4 by 30 percent. Would the directmaterial cost shown on the schedule have been larger or the same? Why?
3. Answer the same question as in requirement (2) for depreciation on the factory building.
4. Suppose only half of the $45,000 in depreciation on equipment had been related to factory machinery, and the other half was related to selling and administrative equipment. How would this have changed the schedule of cost of goods manufactured?

Data From Preceding Problem:-

The following data refers to Superior Metals Corporation for the year 20x4.

Transcribed Image Text:

Raw-material inventory, 12/31/x3... $ 66,750 Depreciation on factory equipment. 45,000 Purchases of raw material in 20x4 548,250 Insurance on factory and equipment. 30,000 Raw-material inventory, 12/31/x4... Direct-labor cost incurred...... 44,250 Utilities for factory 52,500 355,500 Work-in-process inventory. 12/31/x3. -0- Selling and administrative expenses. 201,750 Work-in-process inventory, 12/31/x4 30,000 Indirect labor cost incurred. 112,500 Finished-goods inventory, 12/31/x3 26,250 Property taxes on factory. 67,500 Finished-goods inventory, 12/31/x4. 30,000 Depreciation on factory building 93,750 Applied manufacturing overhead. 433,125 Income tax expense... 18,750 Sales revenue... 1,578,750 Indirect material used.. 33,750