Question

Exercise 1-11 Incomplete manufacturing cost data for Horizon Company for 2020 are presented as follows for four different situations. Indicate the missing amount for each letter. Direct Materials Used Direct Labor Used Manufacturing Overhead Total Manufacturing Costs Work in Process 1/1 Work in Process 12/31 Cost of Goods Manufactured (1) $118,400 $142,000 $92,000 $ (a) $34,500 $ (b) $361,300 (2) (c) 204,000 135,000 451,900 (d) 44,500 472,400 (3) 83,300 101,300 (e) 267,700 62,000 82,300 (f) (4) 75,900 (g) 80,200 289,900 49,100 (h) 274,800 LINK TO TEXT Prepare a condensed cost of goods manufactured schedule for situation (1) for the year ended December 31, 2020.

Answer 1

Answer:

DM            DL   MO   Total Cost Beginning Ending COGM

118,600 144,900 92,800 (A)356,300 35,100 26,500(B) 364,900

118,200(C) 201,500 136,000 455,700 60,900(D) 42,900 473,700

84,900 103,300 81,700(E)  269,900 63,200 81,900 251,200(F)

75,000 142,600(G) 76,000 293,600 49,600 68,400(H) 274,800

Explanation:

(A) Total cost will be the sum of the three cost component:

DM + DL + MO

(B) the ending WIP will be the beginning + cost added less the complete and transferred

(C) from the total cost we subtract the DL and MO to get the material added

(D) similar to B the beginning will be Ending WIP + COGS - cost added

(E) total cost less DM and DL will be the amount of overhead applied

(F) teh cost of goods manufactured is the beginning WIP plus cost added less the ending WIP

(G) direct labor used will be total cost added less DL and MO

(H) same as B