The flow of manufacturing costs through the ledger accounts of ISP, Inc., in the current year is illustrated below in summarized form:

Instructions
Indicate the amounts requested below. Some amounts are shown in the T accounts above; others require short computations. (Show all computations.)
a. Purchases of direct materials.
b. The cost of direct materials used.
c. Direct labor costs assigned to production.
d. The year-end liability for direct wages payable.
e. The overhead as a percentage of direct labor costs.
f. Total manufacturing costs charged to the Work in Process Inventory account during the current year.
g. The cost of finished goods manufactured.
h. The year-end balance in the Work in Process Inventory account.
i. The cost of goods sold.
j. The total amount of inventory listed in the year-end balancesheet.

Transcribed Image Text:

Materials Inventory Work in Process Inventory Beg. balance 10,000 260,000 Ending balance 15,000 Beg. balance 20,000 140,000 210,000 $608,000 Ending balance Direct Labor Finished Goods Inventory $139,000 $140,000Beg. balance 45,000 608,000 Ending balance 50,000 Ending balance 1,000 Manufacturing Overhead Cost of Goods Sold $210,000 $210,000