4. DER, Inc., manufactures a single product. The following information is available for 2022: • Raw materials: Beginning balance: $5,000. Purchased $40,000 on credit. Direct materials used in production were three-fourths of direct materials bought. Work in process: Beginning balance: $3,100. Ending balance: $12,900. Units transferred out: 10,000. All units have the same average cost. • Finished goods: Beginning balance: 0 units. Ending balance: 1,000 units. Also known: Prime costs $55,000 Indirect labor $11,000 Factory insurance $2,500 Utilities $8,000 (80% relates to production) Factory depreciation $7,000
4. DER, Inc., manufactures a single product. The following information is available for 2022: • Raw materials: Beginning balance: $5,000. Purchased $40,000 on credit. Direct materials used in production were three-fourths of direct materials bought. Work in process: Beginning balance: $3,100. Ending balance: $12,900. Units transferred out: 10,000. All units have the same average cost. • Finished goods: Beginning balance: 0 units. Ending balance: 1,000 units. Also known: Prime costs $55,000 Indirect labor $11,000 Factory insurance $2,500 Utilities $8,000 (80% relates to production) Factory depreciation $7,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 14E: For each of the following independent situations, calculate the missing values: 1. The Belen plant...
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