Practice Quiz Essay

277 words - 2 pages

7. Materials Conversion
Units completed and transferred out (all units
are 100% complete with respect to materials) 190,000 190,000
Work in Process, March 31:
Materials: 60,000 X 100% 60,000
Conversion: 60,000 X 30% 18,000
-------------- ---------------
Equivalent Units of Production ...view middle of the document...

20 $ 4.20

b. Costs transferred to finished goods
190,000 X ( $3.20 + $4.20) = $ 1,406,000

c. Ending Work in Process:
Materials 60,000 X $ 3.20 = $ 192,000
Conversion: 18,000 X 4.20 = $ 75,600

8. Honeysuckle Corporation
Schedule of Cost of Goods Manufactured
January XXX

Direct materials:
Raw materials inventory, beginning $21,000
Raw material purchases 35,000
Total raw materials available $56,000
Raw materials inventory, ending 15,000
Raw materials used in production $41,000
Indirect materials included in manufacturing overhead costs incurred 2,500 $38,500
Direct labor 55,000
Manufacturing overhead applied to work in process 30,000
Total manufacturing costs $123,500
Beginning work in process inventory 7,000
$130,500
Ending work in process inventory 9,000
Cost of goods manufactured $121,500

Honeysuckle Corporation
Cost of Goods Sold
January XXX
Finished goods inventory, beginning $33,000
Add cost of goods manufactured $121,500
Cost of goods available for sale $154,500
Deduct: finished goods inventory, ending 30,000
Unadjusted cost of goods sold 124,500
Deduct overapplied overhead 3,000
Adjusted cost of goods sold 121,500

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