Question 1:

(

85

points)

Cambridge Compa

ny manufactured 100,000 units in 2019 and reported the following

costs:

$

$

Machinery maintenance

4,400

Leasing costs

-

plant

39,600

Plant utility expenses

33,200

Depreciation

-

equipment

23,600

Coolants & lubricants

3,440

Property taxes

-

equipment

4,400

Indirect manufacturing labor

28,720

Fire insurance

-

equipment

2,800

Direct

manufacturing labor

218,800

Direct material purchases

315,200

Direct materials inventory, 1/1/19

36,000

Direct materials inventory, 12/31/19

29,200

Finished goods inventory, 1/1/19

68,400

Sales revenue

1,281,200

Finished goods inventory, 12/31/19

129,200

Sales commissions

65,200

Work

-

in

-

process inventory, 1/1/19

10,800

Sales salaries

58,800

Work

-

in

-

process inventory, 12/31/19

7,600

Advertising costs

49,200

Administration costs

81,200

Required:

Use a proper format and calculate the following:

A. The amount of direct materials used during 2019.

B. The cost

of goods manufactured for 2019.

C. The cost of goods sold for 2019.

Question 2: (

15

points)

Explain with examples the differ

ence

between inventoriable

(product)

costs and period

costs

in a manufacturing firm

.