Question
The information below has been taken from the cost records of the Bean Counters Company for 2021 Raw materials used in production $1,400 Total manufacturing
The information below has been taken from the cost records of the Bean Counters Company for 2021
Raw materials used in production $1,400 Total manufacturing costs 8,000 Applied factory overhead 3,300 Selling & Administrative expense 2,150
Inventories: Raw materials, January 1 480 Raw materials, December 31 520 Work in process, January 1 730 Work in process, December 31 650 Finished goods, January 1 480 Finished goods, December 31 460
Required(show your calculation): a. Compute the cost of raw materials purchased during 2021(2 marks). b. The company applies manufacturing overhead to products on the basis of the number of direct labour hours. It estimated 1,100 direct labour hours at the beginning of the year. The actual direct labour hours is 1,000 for 2021. Compute the predetermined overhead rate that was used during 2021(2 marks). c. Compute the direct labour cost (3 marks) d. Compute the cost of goods manufactured for 2021(3 marks). e. Compute cost of goods sold for 2021(2 marks).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started