Crunchem Cereal Company incurred the following actual costs during 20x1. Direct material used Direct labor $275,000...

Transcribed Image Text:

Crunchem Cereal Company incurred the following actual costs during 20x1. Direct material used Direct labor $275,000 120,000 Manufacturing overhead 252,000 The firm's predetermined overhead rate is 210 percent of direct-labor cost. The January 1 inventory balances were as follows: Raw material $30,000 Work in process 39,000 Finished goods 42,000 Each of these inventory balances was 10 percent higher at the end of the year. Required: 1. Prepare a schedule of cost of goods manufactured for 20x1. 2. What was the cost of goods sold for the year? Page 118 3. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: direct material used amounted to $281,000 and raw-material inventory on December 31 was $28,000. Crunchem Cereal Company incurred the following actual costs during 20x1. Direct material used Direct labor $275,000 120,000 Manufacturing overhead 252,000 The firm's predetermined overhead rate is 210 percent of direct-labor cost. The January 1 inventory balances were as follows: Raw material $30,000 Work in process 39,000 Finished goods 42,000 Each of these inventory balances was 10 percent higher at the end of the year. Required: 1. Prepare a schedule of cost of goods manufactured for 20x1. 2. What was the cost of goods sold for the year? Page 118 3. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: direct material used amounted to $281,000 and raw-material inventory on December 31 was $28,000.