Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are purchased, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the balances of direct materials in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated to Finished Goods Inventory and to Cost of Goods Sold (CGS) on the basis of the relative direct labor cost in these accounts at year-end. The following information is for the year ended December 31 The company had no beginning inventories and no ending Work-in-Process (WIP) Inventory. It applies manufacturing overhead at 80% of standard direct labor cost. $ 100,050 150,075 120,060 65,500 Finished goods inventory at 12/31: Direct materials Direct labor Applied manufacturing overhead Direct materials inventory at 12/31 Cost of goods sold for the year ended 12/31: Direct materials Direct labor Applied manufacturing overhead Direct materials price variance (unfavorable) Direct materials usage variance (favorable) Direct labor rate variance (unfavorable) Direct labor efficiency variance (favorable) Actual manufacturing overhead incurred $ 400,200 850,425 680, 340 11,500 17,250 23,000 5,750 793,500 Required: 1. Compute the amount of Direct Materials Price Variance to be prorated to Finished Goods Inventory at December 31. 2. Compute the total amount of direct materials cost in the Finished Goods Inventory at December 31, after all materials variances have been prorated. 3. Compute the total amount of direct labor cost in the Finished Goods Inventory at December 31, after all variances have been prorated. 4. Compute the total cost of Goods Sold (CGS) for the year ended December 31, after all variances have been prorated. (For all requirements, round your intermediate calculations and final answers to the nearest whole dollar amount.) 1. Direct materials price variance 2. Direct materials cost 3. Direct labor cost 4. Cost of goods sold Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are purchased, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the balances of direct materials in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated to Finished Goods Inventory and to Cost of Goods Sold (CGS) on the basis of the relative direct labor cost in these accounts at year-end. The following information is for the year ended December 31 The company had no beginning inventories and no ending Work-in-Process (WIP) Inventory. It applies manufacturing overhead at 80% of standard direct labor cost. $ 100,050 150,075 120,060 65,500 Finished goods inventory at 12/31: Direct materials Direct labor Applied manufacturing overhead Direct materials inventory at 12/31 Cost of goods sold for the year ended 12/31: Direct materials Direct labor Applied manufacturing overhead Direct materials price variance (unfavorable) Direct materials usage variance (favorable) Direct labor rate variance (unfavorable) Direct labor efficiency variance (favorable) Actual manufacturing overhead incurred $ 400,200 850,425 680, 340 11,500 17,250 23,000 5,750 793,500 Required: 1. Compute the amount of Direct Materials Price Variance to be prorated to Finished Goods Inventory at December 31. 2. Compute the total amount of direct materials cost in the Finished Goods Inventory at December 31, after all materials variances have been prorated. 3. Compute the total amount of direct labor cost in the Finished Goods Inventory at December 31, after all variances have been prorated. 4. Compute the total cost of Goods Sold (CGS) for the year ended December 31, after all variances have been prorated. (For all requirements, round your intermediate calculations and final answers to the nearest whole dollar amount.) 1. Direct materials price variance 2. Direct materials cost 3. Direct labor cost 4. Cost of goods sold
