ACC 406 Lecture Notes - Lecture 1: Lead Time, Contribution Margin, Stabilisation Force In Bosnia And Herzegovina
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Understanding the Relationship between Cost Flows, Inventories,and Cost of Goods Sold
Ivano Company has collected cost accounting information for thefollowing subset of items for Years 1 and 2.
Required:
Calculate the values of the missing items.
Year 1 | Year 2 | |
Item: | ||
Direct materials used in production | $ | $50,000 |
Direct materials: Beginning inventory | $10,000 | $ |
Direct materials purchases | 45,000 | $ |
Direct materials: Ending inventory | 15,000 | 17,000 |
Direct labor used in production | $ | 53,000 |
Manufacturing overhead costs used in production | 80,000 | 76,000 |
Work in process: Beginning inventory | 17,000 | 14,000 |
Work in process: Ending inventory | 14,000 | 19,000 |
Finished goods: Beginning inventory | 8,000 | 7,000 |
Finished goods: Ending inventory | 7,000 | 11,000 |
Cost of goods sold | 169,000 | $ |
The information below relates to Derby Manufacturing Company'soperations for a recent month. (Assume that all raw materials aredirect materials.):
Purchases of raw materials........................ | $91,000 | |
Direct labor cost........................................ | $122,000 | |
Selling costs (total).................................... | $42,000 | |
Administrative costs (total)....................... | $56,000 | |
Manufacturing overhead costs (total)....... | $340,000 | |
Raw materials inventory, beginning.......... | $22,000 | |
Work in process inventory, beginning....... | $27,000 | |
Finished goods inventory, beginning........ | $42,000 | |
Raw materials inventory, ending............... | $7,000 | |
Work in process inventory, ending............ | $35,000 | |
Finished goods inventory, ending............. | $15,000 |
What was Derby's cost of goods manufactured for the month?
a. | $545,000 | |
b. | $560,000 | |
c. | $568,000 | |
d. | $587,000 |