A corporation is manufacturing a product which uses a job cost order system with the following info
Question:
A corporation is manufacturing a product which uses a job cost order system with the following info as of July 1, 2021:
Work in process P 110,710
Finished Goods 120,000
Direct Materials inventory 148,600
In analyzing the job order cost sheets, the records disclosed that the following activity occurred during the month of June 2020:
Purchased direct materials 160,000
Freight in 80,000
Freight out 10,000
Amortization of Patent 25,000
Other selling expenses 40,000
Advertising expense 15,000
Factory Heat, light and water 50,000
Utilities expense 30,000
Other general and admin expenses 35,000
Depreciation of machinery 12,900
Superintendence 100,000
Commission Expense 14,000
Depreciation of office furniture 15,000
Direct labor worked 9,900 hours at 15/hour
At the end of June 2021, inventories of work in process was P 124, 200
Inventory of materials 151,000
Finished goods inventory 125,00
Additional information:
Sales 1, 980,000
Sales returns and allowances 10,000
Cash 40,000
Accounts receivable 20,000
Required:
- Conversion cost
- Prime Cost
- Total manufacturing cost
- Cost of goods manufactured
- Cost of goods sold
- Gross profit
Expert Answer:
Answer 1 Conversion Cost 366400 2 Prime Cost 386100 3 Total Manufacturing Cost 604000 4 Cost of good... View the full answer
