Question
Information from The Crossword Company for the month ended June 30, 2022 is given below. All amounts are in thousands of U.S. dollars. Sales $350
Information from The Crossword Company for the month ended June 30, 2022 is given below. All amounts are in thousands of U.S. dollars.
| Sales |
| $350 |
| Selling and administrative costs |
| 26 |
| Purchases of raw materials |
| 9 |
| Direct labor |
| 11 |
| Manufacturing overhead |
| 105 |
| Raw materials used (all direct cost) |
| 11 |
| Cost of goods manufactured |
| 68 |
| Raw materials inventory, June 1, 2022 |
| 30 |
| WIP inventory, June 1, 2022 |
| 103 |
| Finished goods inventory, June 1, 2022 |
| 90 |
| Finished goods inventory, June 30, 2022 |
| 75 |
Required:
Determine each of the following amounts in dollars. Show all calculations.
- Ending Raw Materials Inventory, assuming all raw materials costs are classified as direct costs.
- Ending Work-in-Process (WIP) Inventory.
- Cost of Goods Sold.
- Briefly explain the difference between product costs and period costs, and how manipulation of the classifications may be used in earnings management.
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
