Question
1. Thornton Foods bakes and sells 2,000 dozen muffins each week to food service operations. Among the costs are bakers' salaries, $24,000; production management salaries,
1. Thornton Foods bakes and sells 2,000 dozen muffins each week to food service operations. Among the costs are bakers' salaries, $24,000; production management salaries, $16,000; production equipment operating costs, $32,000; and flour and ingredient costs, $15,000. Using this information, compute: (a) prime costs and (b) conversion costs.
2. Calculate Cost of Goods Sold for the following two companies:
LEWIS, INC.
| MERCER CO. | |
Beginning Inventory: |
| |
Merchandise | $250,000 |
|
Finished Goods | $550,000 | |
Cost of Goods Purchased | 460,000 | |
Cost of Goods Manufactured |
| 688,000 |
Ending Inventory: |
| |
Merchandise | 128,000 | |
Finished Goods | 350,000 |
3. Information for Maxim Manufacturing is presented below. Compute both the cost of goods manufactured and the cost of goods sold for Maxim Manufacturing.
Beginning raw materials inventory | $36,800 |
Beginning work in process inventory | 21,200 |
Direct labor | 81,000 |
Beginning finished goods inventory | 64,000 |
Total factory overhead | 126,000 |
Raw materials purchased | 21,500 |
Ending raw materials inventory | 40,000 |
Ending work in process inventory | 20,000 |
Ending finished goods inventory | 46,000 |
4. Information for Underwood Industries is presented below. Compute the cost of goods manufactured.
Beginning | Ending | |
Raw materials inventory | $26,800 | 30,100 |
Work in process inventory | 41,200 | 39,000 |
Finished goods inventory | 54,000 | 53,500 |
Raw materials purchased | 93,500 | |
Direct labor | 61,000 | |
Total factory overhead | 117,300 |
5. Use the following information to prepare the schedule of cost of goods manufactured for Graffstone Company for the month ended June 30.
Work in Process inventory, May 31 | $12,600 |
Work in Process inventory, June 30 | 16,500 |
Direct materials used during June | 21,000 |
Direct labor used during June | 31,000 |
Factory overhead: | |
Indirect material | 6,400 |
Indirect labor | 9,200 |
Factory rent | 12,000 |
Factory depreciation | 15,000 |
Factory utilities | 18,400 |
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