Hello,Hello,  Sorry I submitted this question earlier but one of my figures was incorrect.  My error.Buck and Company incurred the following costs during August:Raw materials purchased$41,440Direct labor ($13.6 per hour)60,384Manufacturing overhead (actual)90,420Selling expenses31,890Administrative expenses14,070Interest expense6,112Manufacturing overhead is applied on the basis of $20 per direct labor hour.  Assume that overapplied or underapplied overhead is transferred to the cost of goods sold only at the end of the year.  During the month, 4120 units of product were manufactured and 4,400 units of product were sold.  On August 1 and August 31, Buck and Company carried the following inventory balances. August 1August 31Raw materials$19,000$17,800Work in progress53,00056,000Finished goods40,10027,267   Question a-1: Prepare a statement of costs of goods manufactured for the month of August.  (Amounts to be deducted should be indicated by a minus sign).Buck and CompanyStatement of Goods manufactured for the month of August.Raw Materials  Purchases during August41,440 Raw materials inventory August 119,000 Raw materials available for use60,440 Less: Raw materials inventory August 31(for some reason, the homework software says 17,800 is not correct)??? Cost of raw materials used ???Direct labor cost incurred 60,384Manufacturing overhead applied 88,800Total Manufacturing costs, August ???Add: Work in Progress August 1 53,000Less: Work in Progress August 31 (for some reason, the homework software says 56,000 is not correct)???Cost of Goods manufactured, August ???a-2: calculate the average cost per product manufactured.  (Round your answer to 2 decimal places.b. Calculate the cost of goods sold during August.Thanks..

Question
Asked Apr 5, 2019
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Hello,

Hello,  Sorry I submitted this question earlier but one of my figures was incorrect.  My error.

Buck and Company incurred the following costs during August:

Raw materials purchased

$41,440

Direct labor ($13.6 per hour)

60,384

Manufacturing overhead (actual)

90,420

Selling expenses

31,890

Administrative expenses

14,070

Interest expense

6,112

Manufacturing overhead is applied on the basis of $20 per direct labor hour.  Assume that overapplied or underapplied overhead is transferred to the cost of goods sold only at the end of the year.  During the month, 4120 units of product were manufactured and 4,400 units of product were sold.  On August 1 and August 31, Buck and Company carried the following inventory balances.

 

August 1

August 31

Raw materials

$19,000

$17,800

Work in progress

53,000

56,000

Finished goods

40,100

27,267

 

 

 

Question a-1: Prepare a statement of costs of goods manufactured for the month of August.  (Amounts to be deducted should be indicated by a minus sign).

Buck and Company

Statement of Goods manufactured for the month of August.

Raw Materials    
Purchases during August 41,440  
Raw materials inventory August 1 19,000  
Raw materials available for use 60,440  
Less: Raw materials inventory August 31 (for some reason, the homework software says 17,800 is not correct)???  
Cost of raw materials used   ???
Direct labor cost incurred   60,384
Manufacturing overhead applied   88,800
Total Manufacturing costs, August   ???
Add: Work in Progress August 1   53,000
Less: Work in Progress August 31   (for some reason, the homework software says 56,000 is not correct)???
Cost of Goods manufactured, August   ???

a-2: calculate the average cost per product manufactured.  (Round your answer to 2 decimal places.

b. Calculate the cost of goods sold during August.

Thanks..

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Expert Answer

Step 1

Calculating the value of cost of goods manufactured. We have,

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Step 2

Calculating the value of the average cost per product manufactured. We have,

The average cost per product manufactured = Cost of goods manufactured in August / Number of product manufactured

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