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Homework answers / question archive / Direct materials used in production totaled $300,000
Direct materials used in production totaled $300,000. Direct labor was $370,000 and factory overhead was $280,000. What were total manufacturing costs incurred for the month? 2. Use the result in problem #5 for the Manufacturing costs incurred for the month. Beginning work in process was $100,000. There were $250,000 of partially finished goods remaining in work in process inventory at the end of the month. What was the cost of goods manufactured during the month? 3. Use the result in problem #6 for the cost of goods manufactured for the month. Beginning finished goods inventory was $240,000. And the ending finished goods inventory was $133,000. What was the cost of goods sold for the month? 4. A Electric plant cost $30 million in 2008 and a plant of similar capacity and design today costs $58 million. Determine a cost index for electric plants today. 5. A manufacturer factory can produce 58,000 TVs a day. The TVs are sale at a value of $150 per unit. Determine the sensitivity of the manufacturer's revenue to price and production for 15% of increase.
Question 1-3 are based on cost sheet. Hence, below is the general cost sheet structure:
Material+Labour+Manufacturing Overhead=Manufacturing costs
Manufacturing cost + opening WIP - Closing WIP = Cost of goods manufactured (COGM)
COGM + opening FG - Closing FG = Cost of goods sold (COGS)
Hence, based on above:
1. Total manufacturing cost for the month= 300,000 + 370,000 + 280,000 = $ 950,000.
2. COGM = 950,000 + 100,000 - 250,000 = $ 800,000.
3. COGS = 800,000 + 240,000 - 133,000 = $ 907,000.
4. Cost Index of Plants today based on 2008 prices = 58 million / 30 million = 1.93.
