Information about Hannah Industries for the month ending December 31, 2019, is as follows: Sales $450,000 Cost of goods sold 329,000 Net operating income 22,000 Beginning inventories: Direct materials 70,000 Work in process 28,000 Finished goods 90,000 Ending direct materials is 10 percent smaller than beginning direct materials. Ending work in process is 75 percent of the beginning work in process. Ending finished goods increased by $15,000 during the year. Prime costs and conversion costs are 60 percent and 80 percent of total manufacturing costs added, respectively. Assume no income taxes or indirect materials. Required: a. Prepare a statement of cost of goods manufactured for December
Information about Hannah Industries for the month ending December 31, 2019, is as follows: Sales $450,000 Cost of goods sold 329,000 Net operating income 22,000 Beginning inventories: Direct materials 70,000 Work in process 28,000 Finished goods 90,000 Ending direct materials is 10 percent smaller than beginning direct materials. Ending work in process is 75 percent of the beginning work in process. Ending finished goods increased by $15,000 during the year. Prime costs and conversion costs are 60 percent and 80 percent of total manufacturing costs added, respectively. Assume no income taxes or indirect materials. Required: a. Prepare a statement of cost of goods manufactured for December
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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Information about Hannah Industries for the month ending December 31, 2019, is as follows:
Sales $450,000
Cost of goods sold 329,000
Net operating income 22,000
Beginning inventories:
Direct materials 70,000
Work in process 28,000
Finished goods 90,000
Ending direct materials is 10 percent smaller than beginning direct materials. Ending work in
process is 75 percent of the beginning work in process. Ending finished goods increased by $15,000
during the year. Prime costs and conversion costs are 60 percent and 80 percent of total
Assume no income taxes or indirect materials.
Required:
a. Prepare a statement of cost of goods manufactured for December.
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