The general manager of the company requested the amount of "total cost of manufacturing" from the accounting manager and received a report about it. Then he asked for the amount of "cost of goods manufactured". However, the accounting manager said, "There is no need to calculate it, since it is the same as the total cost of manufacturing". Do you agree with the accounting manager's reply? (No need to calculate) Direct materials purchased Indirect labor cost Direct labor cost Manufacturing overhead cost Direct materials used Work-in-process inventory, beginning Work-in-process inventory, ending Number of units sold Number of units produced $200,000 $150,000 $230,000 $210,000 $180,000 $26,000 $26,000 9,600 10,000 27

The general manager of the company requested the amount of "total cost of manufacturing" from the accounting manager and received a report about it. Then he asked for the amount of "cost of goods manufactured". However, the accounting manager said, "There is no need to calculate it, since it is the same as the total cost of manufacturing". Do you agree with the accounting manager's reply? (No need to calculate) Direct materials purchased Indirect labor cost Direct labor cost Manufacturing overhead cost Direct materials used Work-in-process inventory, beginning Work-in-process inventory, ending Number of units sold Number of units produced $200,000 $150,000 $230,000 $210,000 $180,000 $26,000 $26,000 9,600 10,000 27

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 15E: Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are...

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Lavender Manufacturing Company began business in the current year. The company uses the simplified method to allocate mixed services costs to production. The companys costs and expenses for the year were as follows. a. Determine Lavenders total production costs for the year. b. Assume that the hourly pay for direct labor is much lower than the hourly pay for employees in general administration and that the employee turnover is much higher for production employees than for general administration employees. How should these facts affect the companys decision to use the simplified mixed services method to allocate mixed services costs to production?
Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.
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