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PROBLEM 16.5A

The Flow of Manufacturing Costs: A Comprehensive Problem

The balances in the perpetual inventory accounts of Anditon Manufacturing Corporation at the beginning and end of the current year are as follows.

End of Year Beginning of Year Inventory accounts: Materials $126,000 $222,000 Work in Process 109,000 75,000 Finished Goods Inventory 325,000 238,000 The total dollar amounts debited and credited during the year to the accounts used in recording manufacturing activities are as follows.

Debit Entries Credit Entries Account: Materials Inventory $2,410,000 $ ? Direct Labor 1,189,000 992,000 Manufacturing Overhead 893,600 893,600 Work in Process Inventory ? ? Finished Goods Inventory ? ? page 758

Instructions

Using these data, state or compute for the year the following amounts.

Direct materials purchased.

Direct materials used.

Payments of direct labor payrolls.

Direct labor cost assigned to production.

Total manufacturing costs charged to the Work in Process Inventory account during the year.

The cost of finished goods manufactured.

Cost of goods sold.

The total amount to be classified as inventory in the year-end balance sheet.

Prepare a schedule of the cost of finished goods manufactured.lw

PROBLEM 16.5A

The Flow of Manufacturing Costs: A Comprehensive Problem

The balances in the perpetual inventory accounts of Anditon Manufacturing Corporation at the beginning and end of the current year are as follows.

End of Year Beginning of Year Inventory accounts: Materials $126,000 $222,000 Work in Process 109,000 75,000 Finished Goods Inventory 325,000 238,000 The total dollar amounts debited and credited during the year to the accounts used in recording manufacturing activities are as follows.

Debit Entries Credit Entries Account: Materials Inventory $2,410,000 $ ? Direct Labor 1,189,000 992,000 Manufacturing Overhead 893,600 893,600 Work in Process Inventory ? ? Finished Goods Inventory ? ? page 758

Instructions

Using these data, state or compute for the year the following amounts.

Direct materials purchased.

Direct materials used.

Payments of direct labor payrolls.

Direct labor cost assigned to production.

Total manufacturing costs charged to the Work in Process Inventory account during the year.

The cost of finished goods manufactured.

Cost of goods sold.

The total amount to be classified as inventory in the year-end balance sheet.

make a schedule of the cost of finished goods manufactured.