Answer:
Direct Materials Used $ 195,000
Manufacturing Overhead Costs 532,000
Cost Of Goods Manufactured 1075,000
Cost of Goods Sold 1098,000
Period Costs $381,000
Explanation:
What is the cost of direct materials used?
Direct materials inventory, beginning 33,000
Add Direct materials purchases 190,000
Less Direct materials inventory, ending 28,000
Direct Materials Used $ 195,000
How much is the total amount of manufacturing overhead cost?
Manufacturing Overhead Costs 532,000
Heat and light for plant 23,000
Indirect labor 128,000
Insurance on plant 44,000
Repairs on plant building 34,000
Depreciation expense - plant 197,000
Supervisor's salary - plant 106,000 (as it is related to plant therefore it is included in the Manufacturing Overhead. If it were related to sales it would be included in the period costs)
What is the cost of goods manufactured?
Direct Materials Used $ 195,000
Direct Labor 345,000
Manufacturing Overhead Costs 532,000
Total Manufacturing Costs : 1072,000
Add Opening Work in Process 14,000
Cost Of Goods Available for Manufacture 1086,000
Less Closing Work in Process 11,000
Cost Of Goods Manufactured 1075,000
What is the cost of goods sold?
Cost Of Goods Manufactured 1075,000
Add Finished Good Opening Inventory 66,000
Cost of Goods Available for Sale 1141,000
Less Finished Goods Inventory Closing 43,000
Cost of Goods Sold 1098,000
What is total amount of period costs?
Period Costs include all the costs incurred in a particular period other than manufacturing costs . These include Selling and Administration ,advertising costs etc. all which are incurred in a given period for generating sales revenue.
Advertising expenses $ 16,000
Add Depreciation expense - admin. office 107,000
Add Sales representatives' salaries 258,000
Total Period Costs $381,000
