Refer to Cornerstone Exercise 1-1. For next year, Sodowsky predicts that 150,000units will be produced, with the following total costs: Next year, Sodowsky expects to purchase $292,400 of direct materials. Projected beginningand ending inventories for direct materials and work in process are as follows: Required: 1. Prepare a statement of cost of goods manufactured in good form. 2. What if the ending inventory of direct materials increased by $2,000? Which lineitems on the statement of cost of goods manufactured would be affected and in whatdirection (increase or decrease)?
Refer to Cornerstone Exercise 1-1. For next year, Sodowsky predicts that 150,000units will be produced, with the following total costs: Next year, Sodowsky expects to purchase $292,400 of direct materials. Projected beginningand ending inventories for direct materials and work in process are as follows: Required: 1. Prepare a statement of cost of goods manufactured in good form. 2. What if the ending inventory of direct materials increased by $2,000? Which lineitems on the statement of cost of goods manufactured would be affected and in whatdirection (increase or decrease)?
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 3CE: Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods...
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Refer to Cornerstone Exercise 1-1. For next year, Sodowsky predicts that 150,000units will be produced, with the following total costs:
Next year, Sodowsky expects to purchase $292,400 of direct materials. Projected beginningand ending inventories for direct materials and work in process are as follows:
Required:
1. Prepare a statement of cost of goods manufactured in good form.
2. What if the ending inventory of direct materials increased by $2,000? Which lineitems on the statement of cost of goods manufactured would be affected and in whatdirection (increase or decrease)?
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