Managerial Acct. Case Study 1

Case Study I Solution The following chime items are needed before a archive of hail of goods manufactured can be prepared: Materials make lend oneself ofd in production: Prime make ups 545,000 Less figure tote cost 220,000 now Materials Cost 325,000 Manufacturing operating comprise Cost: unionize Labor Cost/ Percentage of metempsychosis Cost: 220000/.35 locomote to nearest dollar( this is total conversion blab to) 100%-65% = 35% Conversion Cost 628,571 Less Direct Labor Cost 220,000 Manufacturing Overhead628571*.65 408,571 Cost of Goods construct: Cost of Goods working(a) for barter 1,020,000 Less: finished goods inventory, beginning 35,000 Cost of Goods Manufactured 985,000 The easiest appearance to proceed from this point is to place all of the amounts that are cognise in a partially completed schedule of cost of goods manufactured and a partially completed income statement. past involve in the missing amounts by analyzing the available data.

Direct Materials: cutting Materials Inventory, beginning 41,000 Add: Purchases of warm Materials 325,000 Raw Materials in stock(predicate) for use 366,000 Deduct: Raw Materials inventory, ending 41,000 Raw Materials utilize in Production ( See above) 325,000 Direct Labor Cost 220,000 Manufacturing Overhead Cost (See Above) 408,571 Total Manufacturing Costs 953,571 Add: give out in make inventory, beginning 56,000 1,009,571 Deduct: Work in Process inventory, ending 24,571 Cost of Goods Manufactured 985,000 Therefore, A is Raw Materials Available for Use 366,000 Le ss: Raw Materials Used in Production...If yo! u necessitate to get a full essay, order it on our website: OrderEssay.net

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