The following information comes from the accounting records for Santa Inez, Inc., for July: Direct materials inventory,

Question:

The following information comes from the accounting records for Santa Inez, Inc., for July:

Direct materials inventory, July 1. . . . . . . . . . . . . . . . . . . . . . . $ 12,000

Direct materials inventory, July 31. . . . . . . . . . . . . . . . . . . . . . 10,000

Work-in-process inventory, July 1 . . . . . . . . . . . . . . . . . . . . . . 6,000

Work-in-process inventory, July 31 . . . . . . . . . . . . . . . . . . . . . 4,000

Finished goods inventory, July 1 . . . . . . . . . . . . . . . . . . . . . . . 36,000

Finished goods inventory, July 31 . . . . . . . . . . . . . . . . . . . . . . 48,000

Direct materials purchased during July . . . . . . . . . . . . . . . . . . 160,000

Direct labor costs, July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,000

Manufacturing overhead, July . . . . . . . . . . . . . . . . . . . . . . . . .168,000


Required

Compute for the month of July:

a. Total prime costs.

b. Total conversion costs.

c. Total manufacturing costs.

d. Cost of goods manufactured.

e. Cost of goods sold.

(CPA adapted)


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Fundamentals of Cost Accounting

ISBN: 978-0078025525

4th edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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