Answer:
A.Materials consumed in January = $31,000
B.Total Manufacturing Overhead Costs = $83,000
C. Cost of Goods Manufactured = $157,000
Explanation:
Direct Material $24,000 $23,000
Work in Process 18,000 15,000
Finished Goods 22,000 27,000
Net Sales Revenue $325,000
Direct Labour Costs 40,000
Indirect Labour Costs 45,000
Sales Commissions 15,000
Administrative Expenses 18,000
Direct Materials Purchased during January 30,000
Depreciation, factory 10,000
Factory Maintenance and Supplies 8,000
Utilities, (80% factory , 20% office) 25,000
General Office Salaries 12,000
A. Amount of direct materials used in January
Opening Direct Material $24,000
Add Purchased Direct Material $30,000
Less Closing Direct Materials $23,000
Materials consumed in January = $31,000
B. Manufacturing Overhead Costs:
Indirect Labour Costs 45,000
Depreciation, factory 10,000
Factory Maintenance and Supplies 8,000
Utilities, (80% factory) 20,000
Total Manufacturing Overhead Costs = $83,000
C. Cost of Goods Manufactured
Cost of Direct Materials Consumed = $31,000
Add :
Opening Work in Process $18,000
Less Closing Work in Process $15,000
Transfer to Finished Goods $3,000
Add Direct Labor Costs $40,000
Add Manufacturing Overhead Costs $83,000
Cost of Goods Manufactured = $157,000
