Question
Sydney Incorporation's books for 2020 (January 1 to December 31) contain the following information: 1.Direct materials (DM) closing inventory was $4,000 less than the DM
Sydney Incorporation's books for 2020 (January 1 to December 31) contain the following information:
1.Direct materials (DM) closing inventory was $4,000 less than the DM opening inventory.
2.Materials ending inventory wasexactly halfof the materials beginning inventory.
3.Work in process inventory (WIP) at the start of the year was $145,000.
4.Finished goods inventory at the end of the year was $65,000.
5.Direct materials worth $150,000 were purchased during the year.
6.Direct materials used were 2.5 times the cost of direct labor.
7.Manufacturing overhead amounted toexactly halfof the cost of direct labor.
8.Total manufacturing costs incurred during the period were $246,400; the total manufacturing costs were 80% of cost of goods manufactured and $156,000 less than cost of goods sold.
Compute/work out the following for 2020, showing all your workings/calculations:
a)What was thebeginning DMinventory for the year?
b)What was theclosing DM inventoryfor the year?
c)What was theclosing work in process (WIP) inventoryfor the year?
d)What was thebeginning finished goods (FG) inventoryfor the year?
e)How much DMwere used during the year?
f)How muchmanufacturing overhead costwas incurred during the year?
g)How muchdirect labor (DL) costwas incurred during the year?
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