Portland Manufacturing had the following data for the period just ended:Work in process, Jan. 1$21,000Work in process, Dec. 3140,000Finished goods, Jan. 170,000Finished goods, Dec. 3161,000Direct materials used126,000Direct labor260,000Factory depreciation80,000Sales945,000Advertising expense 52,000Factory utilities27,000Indirect materials 19,000Indirect labor35,000Required:A. Calculate Portland's cost of goods manufactured.B. Calculate Portland's cost of goods sold.
What will be an ideal response?
| A. | ? |
| Direct material used | $126,000 |
| Direct labor | 260,000 |
| Manufacturing overhead: | ? |
| Factory Depreciation | 80,000 |
| Factory Utilities | 27,000 |
| Indirect materials | 19,000 |
| Indirect labor | 35,000 |
| Total manufacturing costs | $ 547,000 |
| Add: Work in process, Jan. 1 | 21,000 |
| ? | $568,000 |
| Deduct: Work in process, Dec. 31 | 40,000 |
| Cost of goods Manufactured | $ 528,000 |
| ? | ? |
| B. Finished Goods, Jan. 1 | $ 70,000 |
| Add: Cost of Goods Manufactured | 528,000 |
| Cost of goods available for sale | $ 598,000 |
| Finished Goods, Dec. 31 | 61,000 |
| Cost of goods sold | $ 537,000 |
You might also like to view...
Kroeker Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: MillingCustomizingMachine-hours 17,000 12,000Direct labor-hours 1,000 9,000Total fixed manufacturing overhead cost$112,200$81,000Variable manufacturing overhead per machine-hour$1.70 Variable manufacturing overhead per direct labor-hour $4.30 During the current month the company started and finished Job T898. The following data were
recorded for this job: Job T898:MillingCustomizingMachine-hours 80 30Direct labor-hours 20 50The amount of overhead applied in the Customizing Department to Job T898 is closest to: A. $215.00 B. $119,700.00 C. $665.00 D. $450.00
ND Daily, a local city newspaper, caters to the residents of the city as well as the suburbs located in a 20-mile radius around the city. If the market area within the city is referred to as the city zone, the market in the suburbs whose residents trade with merchants in the city zone is referred to as the
A. peripheral zone. B. demarcated zone. C. special category zone. D. local zone. E. retail trading zone.
When a doctor asks a pharmaceutical sales representative about the side effects of a new drug the rep was informing the doctor about in hopes that he will prescribe it for patients, it was an example of:
A. feedback B. decoding C. noise D. indirect transmission E. nonverbal communication
According to the Statements on Standards for Tax Services, if a CPA believes that a client's prior-year tax return contains false information, the CPA should report this to the
A. SEC. B. AICPA. C. IRS. D. None of the above. The CPA does not report the false information to any external agencies, unless required by law.