Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

An analysis of the accounts of Crane Company reveals the following manufacturing cost data for the month ended September 30, 2020. Inventories Beginning Ending Raw

An analysis of the accounts of Crane Company reveals the following manufacturing cost data for the month ended September 30, 2020.

Inventories

Beginning

Ending

Raw materials

$ 12,100 $ 11,400

Work in process

7,600 5,100

Finished goods

10,100 12,100

Costs incurred: raw materials purchases $ 62,600, direct labor $ 51,100, manufacturing overhead $ 26,250. The specific overhead costs were: indirect labor $ 6,600, factory insurance $ 5,100, machinery depreciation $ 6,100, machinery repairs $ 2,900, factory utilities $ 3,700, miscellaneous factory costs $ 1,850. Assume that all raw materials used were direct materials.

Crane Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in several changes in Crane cost structure. Both direct labor and indirect labor would decrease by 40%. Factory insurance would increase to $ 8,100, machinery depreciation would double, machinery repairs would decrease to $ 510, utilities would decrease to $ 2,600 and miscellaneous factory costs would increase to $ 1,950. Materials usage would remain at current levels. Analyze the new purchase by preparing a cost of goods manufactured schedule for September 30, 2020 using the new data.

Crane Co. Cost of Goods Manufacturing Schedule choose the accounting period For the Month Ended September 30, 2020For the Year Ended September 30, 2020September 30, 2020

select

$ enter a dollar amount

select

select

$ enter a dollar amount

select

enter a dollar amount

select

enter a total of the two previous amounts

select

enter a dollar amount

select

$ enter a total amount for section one

select

enter a dollar amount

select

select

enter a dollar amount

select

enter a dollar amount

select

enter a dollar amount

select

enter a dollar amount

select

enter a dollar amount

select

enter a dollar amount

select

enter a total amount for section two

select

enter a total amount for the first part

select

enter a total amount for all two parts

select

enter a dollar amount

select

$ enter a total amount for this schedule

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

978-0077398194

Students also viewed these Accounting questions