Question

Marvelous Marshmallow Company’s cost of goods sold for January was $690,000. January 31 work-in-process inventory was 90 percent of January 1 work-in-process inventory. Manufacturing overhead applied was 50 percent of direct-labor cost. Other information pertaining to the company’s inventories and production for the month of January is as follows:
Beginning inventories, January 1:
Raw material................................................................ $ 34,000
Work in process............................................................ 80,000
Finished goods............................................................. 204,000
Purchases of raw material during January................... 226,000
Ending inventories, January 31:
Raw material................................................................ 52,000
Work in process........................................................... ?
Finished goods............................................................ 210,000

Required:
1. Prepare a schedule of cost of goods manufactured for the month of January.
2. Prepare a schedule to compute the prime costs (direct material and direct labor) incurred during January.
3. Prepare a schedule to compute the conversion costs (direct labor and manufacturing overhead) charged to work in process during January.
(CPA, adapted)



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  • CreatedApril 22, 2014
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