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CE 1 4 - 2 An analysis of the accounts of Williams Company reveals the following manufacturing cost data for the month ended September 3

CE 14-2
An analysis of the accounts of Williams Company reveals the following manufacturing cost data for the month ended September 30,2020.
\table[[Inventories,Beginning,Ending],[Raw
materials, Begining: $12,000,Ending: $11,300]
Work in Process, begining: 7500, ending: 5000
[Finished goods, begining: 10,000, ending: 12,000].
Costs incurred: raw materials purchase $62,500, direct labor $51,000, manufacturing overhead $25,650. The specific overhead costs were: indirect labor $6,500, factory insurrance $5,000, machinery depreciation $6,000, machinery repairs $2,800, factory utilities $3600, miscellaneous factory costs $1750. Assumr that all materials used were direct materials.
Intructions
(a) Prepare the cost of goods manufactured schedule for the month ended September 30,2020.
(b) Show the presentation of the ending inventories on September 30,2020, balance sheet.
(c) Williams Company is considering the purchase of new automated assembly line for its factory. The purchase would result in several changes in Williams' cost structure. Both direct labor and indirect labor would decrese by 40%. Factory insurance would increase to $8,000 machinery depreciation would double, machinery repairs would decrease to $500 utilities would decrease to $2,500 and miscellaneous factory costs would increase to $1,850. Materials usage would remain at current levels. (1) Analyze the new purchase by preparing a cost of goods manufactured schedule for September 30,2020 using the new data. (2) Should Williams Company make this purchase? (3) Explain the factors that should be considered in the decision.
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