Challenge Exercise 1-2 a-b, c1 (Part Level Submission) An analysis of the accounts of Williams Company reveals the following manufacturing cost data for the month ended September 30, 2020. Inventories Raw materials Beginning $10,800 7,500 10,600 Ending $11,600 4,800 13,200 Work in process Finished goods Costs incurred: raw materials purchases $56,700, direct labor $50,300, manufacturing overhead $24,900. The specific overhead costs were: indirect labor $6,100, factory insurance $5,000, machinery depreciation $6,200, machinery repairs $2,500, factory utilities $3,500, miscellaneous factory costs $1,600. Assume that all raw materials used were direct materials. Williams Co. Cost of Goods Manufacturing Schedule For the Month Ended September 30, 2020 V Work in Process 9/1/20 7500 $1 Direct Materials Raw Materials Inventory 9/1/20 10800 Add Raw Materials Purchases 56700 Total Raw Materials Available for Use v 67500 Less Raw Materials Inventory 9/30/20 11600 Direct Materials Used 55900 $ Direct Labor 50300 Manufacturing Overhead Indirect Labor 6100 Factory Insurance 5000 Machine Depreciation 6200 Factory Utilities 3500 Machine Repairs 2500 Miscellaneous Factory Costs 1600 Total Overhead 24900 Total Manufacturing Costs 131100 Total Cost of Work in Process 138600 Less V Work in Process 9/30/20 4800 133800 Cost of Goods Manufactured $1 (b) Your answer is correct. Show the presentation of the ending inventories on September 30, 2020, balance sheet. Williams Co. Balance Sheet Presentation (partial) September 30, 2020 Inventories Finished Goods Inventory 13200 Work in Process Inventory 4800 Raw Materials Inventory 11600 Total Inventories 296001 $ Williams Company is considering the purchase of a 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 decrease by 40%. Factory insurance would increase to $7,800, machinery depreciation would double, machinery repairs would decrease to $500, utilities would decrease to $2,400 and miscellaneous factory costs would increase to $1,710. 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. Williams Co. Cost of Goods Manufacturing Schedule For the Month Ended September 30, 2020 V Work in Process 9/1/20 $ Direct Materials Raw Materials Inventory 9/1/20 $ Add Raw Materials Purchases Total Raw Materials Available for Use Less Raw Materials Inventory 9/30/20 Direct Materials Used $ Direct Labor Manufacturing Overhead Indirect Labor Factory Insurance Machine Depreciation Factory Utilities Machine Repairs Miscellaneous Factory Costs Total Overhead Total Manufacturing Costs Total Cost of Work in Process Less Work in Process 9/30/20 : Cost of Goods Manufactured $
