Classic Sound is a start-up company that produces vinyl records for numerous record labels around the world. The company has two full-time employees working in the production department, while the CEO splits her time 80/20% between developing new business and overseeing the production process. Below is information extracted from the accounting records of the first three months of operations.

Beginning inventory of raw materials	ps	0
raw material purchases		54.000
Ending inventory of raw materials		27,000
Direct labour		43,600
Manufacturing overhead		32,800
Initial work-in-process inventory		0
Ending inventory of work in process		5,800
Purchase of production equipment.		140.000
Production plant rental		10,200

Required:

1. Prepare a cost of goods manufactured schedule for the company for the month. (Do not leave blank spaces; enter a 0 where necessary.)

2. What types of expenses are likely to be included in the total manufacturing overhead cost of $32,800 incurred during the first three months of operation? (You can select more than one answer. Click once on the question mark box to produce a check mark for a correct answer and double-click on the question mark box to clear the box for an incorrect answer Any box left with a question mark will automatically be graded incorrect.)

check all that apply

• Selling expenses
• administrative expenses
• Ending inventory of work in process
• Production plant rent
• Depreciation in production equipment.
• Safe in the production team.
• Indirect materials used in the production of records
• Indirect labor related to the supervision of the production process by the CEO (20% of his time).
• Indirect labor related to the repair, maintenance, and security of production facilities.

Answer rating: 100% (QA)

1 Indirect Materials Used Total Raw Materials ... View the full answer