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Cost Management Midterm Summer Görünüm Duren Ba?vurular Posta Gönderileri Goeden Geçir IEEE - A A MO lasten ASCEGAHI ArcBen Aaçç nutrition 4 XX A- Arai 4
Cost Management Midterm Summer Görünüm Duren Ba?vurular Posta Gönderileri Goeden Geçir IEEE - A A MO lasten ASCEGAHI ArcBen Aaçç nutrition 4 XX A- Arai 4. Consider the following account balances (in thousands) for the Full of Empty Company: 1 Beginning of 2018 Direct Materials Inventory 522,000 Work-in-Process Inventory - 21.000 Finished Goods Inventory 18.000 Purchases of Direct Materials Direct Manufacturing Labor Indirect Manufacturing Labor Plantarance Depreciation_Piant Building and Equipment Repairs and Maintenance Plant... Marketing, Dribution and Cust. Ser. Costs. General and Administrative Costs 2.- Prepare the Schedule of Cost of Goods Sold. (I pes) Calculate the amounts of conversion cost and product cost (5) End of 2018 $26,000 20,0001 23,000 75,0001 25,000 15,000 9,000 11,0001 ..4,000– 93,000 29,000 1 MacBook Air F AU 3 % 5 & 6 IN 8 9 W E R T Y U ? S D F G H ?? ?
Expert Solution
a.
| Schedule of Cost of Goods manufactured | ||
| Direct Materials | ||
| Raw Material, Beginning Inventory | $ 22,000 | |
| Add: Purchases | $ 75,000 | |
| Total Raw Material Available | $ 97,000 | |
| Deduct : Raw Material in inventory, ending | $ 26,000 | |
| Raw Material used in production | $ 71,000 | |
| Direct Labor | $ 25,000 | |
| Manufacturing Overhead | ||
| Indirect Labor | $ 15,000 | |
| Plant insurance | $ 9,000 | |
| Depreciation | $ 11,000 | |
| Repair & Maintenance | $ 4,000 | $ 39,000 |
| Total Manufacturing Costs | $ 135,000 | |
| Add: Beginning Work in Process Inventory | $ 21,000 | |
| $ 156,000 | ||
| Deduct: Ending Work in Process Inventory | $ 20,000 | |
| Cost of Goods Manufactured | $ 136,000 | |
| Schedule of Cost of Goods Sold | ||
| Finished Goods Inventory, Beginning | $ 18,000 | |
| Add: Cost of Goods Manufactured | $ 136,000 | |
| Cost of Goods Available for sale | $ 154,000 | |
| Deduct : Finished Goods Inventory, Ending | $ 23,000 | |
| Cost of goods sold | $ 131,000 |
b.
Conversion Cost = Direct Labor + Manufacturing Overhead
= $25000 + 39000 = $64,000
Product Cost = $135000
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