Concept introduction:
Direct material cost relates to the material which use in production and direct labor cost means the labor which helps in making raw material into finished goods and other remaining expenses are manufacturing overhead.
Raw material which is directly attributable to a job is transferred to the work in progress account and the raw material which is commonly used in the production of all products is transferred to the manufacturing overhead account.
Requirement-1:
To calculate:
Amount of raw material transferred to work in progress Inventory account.
Concept introduction:
Direct material cost relates to the material which use in production and direct labor cost means the labor which helps in making raw material into finished goods and other remaining expenses are manufacturing overhead.
Raw material which is directly attributable to a job is transferred to the work in progress account and the raw material which is commonly used in the production of all products is transferred to the manufacturing overhead account.
Requirement-2:
To calculate:
Amount of material transferred to manufacturing overhead account.
Concept introduction:
Direct material cost relates to the material which use in production and direct labor cost means the labor which helps in making raw material into finished goods and other remaining expenses are manufacturing overhead.
Raw material which is directly attributable to a job is transferred to the work in progress account and the raw material which is commonly used in the production of all products is transferred to the manufacturing overhead account.
Requirement-3:
To calculate:
Find out the balance in the raw material inventory account?
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Managerial Accounting - With Access
- The following data are taken from the general ledger and other records of Coral Park Production Co. on January 31, the end of the first month of operations in the current fiscal year: a. Prepare a statement of cost of goods manufactured. b. Prepare the cost of goods sold section of the income statement.arrow_forwardDuring March, the following costs were charged to the manufacturing department: $14886 for materials; $14,656 for labor; and $13,820 for manufacturing overhead. The records show that 30,680 units were completed and transferred, while 2,400 remained in ending inventory. There were 33,080 equivalent units of material and 31,640 of conversion costs. Using the weighted-average method, what is the cost of inventory transferred and the balance in work in process inventory?arrow_forwardThe following data are taken from the general ledger and other records of Phoenix Products Co. on October 31, the end of the first month of operations in the current fiscal year: a. Prepare a statement of cost of goods manufactured. b. Prepare the cost of goods sold section of the income statement.arrow_forward
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- OReilly Manufacturing Co.s cost of goods sold for the month ended July 31 was 345,000. The ending work in process inventory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. No indirect materials were used during the period. Other information pertaining to OReillys inventories and production for July is as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information. Start by using cost of goods sold to solve for the cost of goods manufactured.) 2. Prepare a schedule to compute the prime cost incurred during July. 3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.arrow_forwardMasonrys records show the raw materials inventory had purchases of $1,000and an ending raw materials inventory balance of $200. If the cost of materials used during the month was $900, what was the beginning inventory?arrow_forwardThe following data were taken from the general ledger and other data of McDonough Manufacturing on July 31: Compute the cost of goods sold for the month of July.arrow_forward
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