Galactica Ltd's cost of goods sold For June was $690 000. Work in process inventory on so

Question:

Galactica Ltd's cost of goods sold For June was $690 000. Work in process inventory on so June was 90 per cent of the 1 June work in process inventory. Manufacturing overhead applied was so per cent of direct labour cost. Other information relating to the company's inventories and production for the month of June is as follows:

Beginning inventories, 1 June:

Raw material...................................................$34,000

Work in process.................................................80,000

Finished goods................................................204,000

Purchases of raw material during March..................226,000

Ending inventories, 30 June:

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 June.

2. Prepare a schedule to calculate the prime costs (direct material and direct labour) incurred during June.

3. Prepare a schedule to calculate the conversion costs (direct labour and manufacturing overhead) charged to work in process during June.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Management Accounting

ISBN: 9781760421144

7th Edition

Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton

Question Posted: