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Raw Materials Purchases: $140,000 Raw Materials, beginning: $60,000 Raw materials, ending: $64,000 Rent Expense - Factory: $45,000 Repairs Expense - Factory: $11,500 Factory utilities: $9,500
Raw Materials Purchases: $140,000
Raw Materials, beginning: $60,000
Raw materials, ending: $64,000
Rent Expense - Factory: $45,000
Repairs Expense - Factory: $11,500
Factory utilities: $9,500
Factory supplies used: $14,000
Indirect labor: $38,000
General & administrative expenses: $103,500
Selling expenses: $75,000
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You have been asked by the CEO of Mountaineer Co. to assist in analyzing product costs. This analysis is used in internal decision making and in reporting to investors. The following Tableau Dashboard provides data needed for the analysis. Raw Materials Inventories Raw materials, beginning Raw materials purchases Raw materials used Raw materials, ending $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 Work in Process & Finished Goods Inventories Work in Process Finished Goods Rent expense - Factory $50,000 54,000 50,000 $40,000 43,000 Repairs expense - Factory $30,000 33,000 Factory supplies used (indirect materials) Factory utilities $20,000 $10,000 $0 Beginning Ending Beginning Ending Indirect labor Additional Data Accounts receivable, net $150,000 Cash $350,000 Direct labor $180,000 Sales and Select Expense Accounts Sales General & administrative expenses Selling expenses $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 Required 1 Required 2 Compute the total prime costs. Direct materials Beginning raw materials inventory Raw materials purchases Raw materials available for use Less: Ending raw materials inventory Direct materials used Direct labor Total prime costs 60,000 140,000 200,000 65,000 135,000 180,000 $ 315,000 Required 1 Required 2 Compute the total conversion costs. X $ 315,000 Ending raw materials inventory Factory overhead Rent expense - Factory Indirect labor Factory utilities Repairs expense - Factory Factory supplies used (indirect materials) 65,000 60,000 20,000 25,000 30,000 Total factory overhead Total conversion costs 200,000 515,000 $Step by Step Solution
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