Question
The following are partially completed T-accounts for Novak. The accountant needs help filling in the remaining details of the accounts before closing month-end and starting
The following are partially completed T-accounts for Novak. The accountant needs help filling in the remaining details of the accounts before closing month-end and starting next month's transactions.
DM Inventory | ||
Beginning balance | 500 | |
Ending balance | 1,100 | |
WIP Inventory | ||
Beginning balance | 2,000 | |
Ending balance | 4,500 | |
FG Inventory | ||
Beginning balance | 8,500 | |
Ending balance | 12,000 | |
COGS | ||
237,000 |
The only additional information available for this month includes payroll records and a few other items, as follows.
1. Novak paid $86,000 in total payroll costs this month, split evenly between hourly manufacturing worker wages and manufacturing supervisor salaries.
2. It paid $4,100 in total utility costs: 80% was for manufacturing facilities, and 20% was for executive and administrative space.
3. Buildings and equipment used in manufacturing are depreciated at a steady rate of $20,000 per month; buildings and office equipment in executive and administrative spaces are depreciated at a steady rate of $13,000 per month.
4. Other indirect material and indirect labor costs amounted to $2,700.
(a) Determine the COGS and COGM this month.
COGS $237,000
COGM $240,500
(b) Determine the total manufacturing costs for the month.
Total Manufacturing Costs $
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