Answer:
Complete question is:
XYZ Company recorded the following information related to their inventory
accounts for 2020:
January 1, 2020 December 31, 2020
Direct materials 37,000 50,000
Work in process 38,000 41,000
Finished goods 22,000 34,000
The following information was taken from XYZ Company's accounting records
for 2020:
Sales revenue ........................................... $630,000
Direct materials purchased .............................. ?
Depreciation, factory equipment ......................... 34,000
Prime costs ............................................. 250,000
Utilities (60% for factory; 40% for office building) .... 20,000
Sales commissions ....................................... ?
Indirect materials ...................................... 25,000
Depreciation, office equipment .......................... 30,000
Rent, factory building .................................. 56,000
Net income .............................................. 10,000
Direct labor ............................................ ?
Advertising ............................................. 75,000
Production supervisor's salary .......................... 81,000
Additional information:
1. Direct labor comprised 35% of the conversion costs for 2020.
2. The actual overhead cost for 2020 was equal to the overhead applied
to production. Thus there was no overhead variance for 2020.
A) Calculate XYZ Company's direct labor cost for 2020.
B) Calculate the direct materials purchased by XYZ Company in 2020.
C) Calculate XYZ Company's sales commissions for 2020.
Answer is:
a) Total overhead = 34000+12000+25000+56000+81000 = 208000
Direct labor = 208000*35/65 = 112000
b) Direct material used = 250000-112000 = 138000
Direct material purchase = 138000+50000-37000 = 151000
c) Sales and administrative expense other than sales commission = 113000
Sales commission = 630000-443000-113000-10000 = 64000
Explanation:
