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
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 |
Related questions
| Pirkl Corporation has providedthe following data for the month of March: |
| Inventories | Beginning | Ending | ||
| Raw materials | $ | 24,000 | $ | 39,000 |
| Work in process | $ | 13,000 | $ | 20,000 |
| Finished goods | $ | 46,000 | $ | 35,000 |
Additional Information:
| Raw materialspurchases | $ | 78,000 |
| Direct laborcost | $ | 84,000 |
| Manufacturingoverhead cost incurred | $ | 43,000 |
| Indirect materialsincluded in manufacturing overhead cost incurred | $ | 6,400 |
| Manufacturingoverhead cost applied to work in process | $ | 44,600 |
| Required: | |
| Prepare a Schedule ofCost of Goods Manufactured and a Schedule of Cost of Goods Sold.(Input all amounts as positive values. Omit the "$" sign inyour response.) |
| Schedule of Cost of Goods Manufactured | ||
| Directmaterials: | ||
| (Click to select)Beginning work inprocess inventoryBeginning finished goods inventoryEnding rawmaterials inventoryBeginning materials inventoryEnding work inprocess inventory | $ | |
| (Click to select)DeductAdd : (Clickto select)Ending work in process inventoryBeginning work in processinventoryFinished goods inventory, beginningPurchases of rawmaterialsRaw materials inventory, ending | ||
| Raw materials available for use | ||
| (Click to select)DeductAdd : (Clickto select)Ending work in process inventoryPurchases of rawmaterialsBeginning materials inventoryEnding raw materialsinventoryBeginning work in process inventory | ||
| Raw materials used in production | ||
| (Click to select)DeductAdd : (Clickto select)Beginning work in process inventoryindirect materialsincluded in manufacturing overhead incurredRaw materials inventory,endingEnding work in process inventoryRaw materials inventory,beginning | ||
| (Click toselect)Direct laborDirect materialsIndirect materialsIndirectlaborPurchase of raw materials | $ | |
| (Click to select)Rawmaterials inventory, endingEnding work in process inventoryRawmaterials inventory, beginningDirect laborPurchases of rawmaterials | ||
| (Click toselect)Manufacturing overhead applied to work in processinventoryBeginning work in process inventoryPurchases of rawmaterialsRaw materials inventory, beginningRaw materials inventory,ending | ||
| Total manufacturingcosts | ||
| (Click toselect)AddDeduct : (Click to select)Raw materials inventory,beginningRaw materials inventory, endingPurchases of rawmaterialsEnding work in process inventoryBeginning work in processinventory | ||
| (Click toselect)DeductAdd : (Click to select)Beginning work in processinventoryRaw materials inventory, beginningRaw materials inventory,endingPurchases of raw materialsEnding work in processinventory | ||
| Cost of goodsmanufactured | $ | |
| Schedule of Cost of Goods Sold | |
| (Click toselect)Cost of goods manufacturedCost of goods available forsaleFinished goods inventory, endingOverapplied overheadFinishedgoods inventory, beginning | $ |
| (Click toselect)DeductAdd : (Click to select)Unadjusted cost of goodssoldOverapplied overheadCost of goods manufacturedCost of goodsavailable for saleUnderapplied overhead | |
| (Click toselect)Unadjusted cost of goods soldCost of goods available forsaleCost of goods manufacturedFinished goods inventory,beginningFinished goods inventory, ending | |
| (Click toselect)AddDeduct : (Click to select)Overapplied overheadCost ofgoods manufacturedEnding finished goods inventoryUnderappliedoverheadCost of goods available for sale | |
| (Click toselect)Finished goods inventory, beginningUnderappliedoverheadFinished goods inventory, endingUnadjusted cost of goodssoldCost of goods manufactured | |
| (Click toselect)AddDeduct : (Click to select)Overapplied overheadCost ofgoods manufacturedUnderapplied overheadFinished goods inventory,endingCost of goods available for sale | |
| Adjusted cost ofgoods sold | $ |
Using the below financial statements, determine certainnumber of variable costs and a fixed costs for the month of Dec.2016 and calculate the following:
Breakeven point in units
Breakeven point in $S
Assume a target income and determine how many units you need tosell in order to make your target income.
LINDSEYâS LIP SETS
Schedule of Cost of Goods Manufactured
For the Year Ending December 31, 2016
Direct Materials: | |||
Beginning Raw Materials Inventory, Jan. 1 | $100,000 | ||
Plus: Net purchases of raw material | $200,000 | ||
Raw materials available | $300,000 | ||
Less: Ending raw materials inventory, Dec. 31 | $150,000 | ||
Raw materials transferred to production | $150,000 | ||
Direct Labor | $200,000 | ||
Manufacturing Overhead | |||
Indirect materials | $10,000 | ||
Indirectlabor | $45,000 | ||
FactoryDepreciation | $10,000 | $65,000 | |
Total manufacturing costs | $415,000 | ||
Beginning work in process inventory Jan.1 | $50,000 | ||
Cost of goods manufactured | $530,000 | ||
Less: Ending work in process inventory, Dec. 31 | $2,000 | ||
Cost of goods manufactured | $528,000 |
LINDSEYâS LIP SETS
Schedule of Cost of Goods Sold
For the Year Ending December 31 2016
Beginning finished goods inventory, Jan. 1 | $20,000 |
Plus: Cost of goods manufactured | $528,000 |
Goods available forsale | $548,000 |
Less: Finished goods inventory, Dec. 31 | $10,000 |
Cost of goodssold | $538,000 |
LINDSEYâS LIP SETS
Income Statement
For the Year Ending December 31 2016
Sales | $3,200,000 | ||
Cost of goods sold | $538,000 | ||
Gross profit | $2,662,000 | ||
Operating expenses | |||
Online shop selling | $24,000 | ||
General administrative | $10,000 | $34,000 | |
Net income | $2,628,000 |
