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Please show work: LeanNMean Manufacturing uses just-in-time inventory techniques to reduce their carrying costs. Despite having a low level of working capital, they experience significant
Please show work:
LeanNMean Manufacturing uses just-in-time inventory techniques to reduce their carrying costs. Despite having a low level of working capital, they experience significant sales and production levels. LeanNMean reported the following information at year-end:
Beginning Materials Inventory | $ 2,000 | Indirect Materials Used | $ 8,000 |
Ending Materials Inventory | 2,400 | Direct Labor | 288,000 |
Beginning Work in Process | 16,000 | Indirect Labor | 390,000 |
Ending Work in Process | 8,000 | Factory Depreciation | 20,000 |
Beginning Finished Goods Inventory | 4,800 | Factory Maintenance | 12,000 |
Ending Finished Goods Inventory | 3,000 | Factory Utilities | 32,000 |
Cost of Materials Purchased | 320,000 | Selling & Administrative Expense | 656,000 |
Instructions: Compute each of the following amounts, showing all work for partial credit
1.Direct material used
2. Total manufacturing overhead
3. Total manufacturing costs
4. Cost of goods manufactured
5. Cost of goods sold
6. Prime cost
7. Conversion cost
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