Question
a) Benson Inc.'s accounting records reflect the following inventories: Dec. 31, 2016 Dec. 31, 2017 Raw materials inventory$80,000$64,000 Work in process inventory104,000116,000 Finished goods inventory100,00092,000
a) Benson Inc.'s accounting records reflect the following inventories:
Dec. 31, 2016Dec. 31, 2017
Raw materials inventory$80,000$64,000
Work in process inventory104,000116,000
Finished goods inventory100,00092,000
During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000.
How much raw materials were transferred to production during 2017 for Benson?
b) Benson Inc.'s accounting records reflect the following inventories:
Dec. 31, 2016Dec. 31, 2017
Raw materials inventory$80,000$64,000
Work in process inventory104,000116,000
Finished goods inventory100,00092,000
How much is total manufacturing costs incurred during 2017 for Benson?
c) Benson Inc.'s accounting records reflect the following inventories:
Dec. 31, 2016Dec. 31, 2017
Raw materials inventory$80,000$64,000
Work in process inventory104,000116,000
Finished goods inventory100,00092,000
During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000.
Assume Benson's cost of goods manufactured for 2017 amounted to $1,660,000. How much would it report as cost of goods sold for the year?
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
4th Canadian edition
978-1118856994
