Case Study I Solution

The subsequent cost items are needed prior to a schedule of cost of goods made can be ready:

Materials used in production:

Primary Costs $545, 000. 00

Significantly less Direct Labor Cost $220, 000. 00

Direct Materials Price $325, 500. 00

Manufacturing Cost to do business Cost:

Direct Labor Cost/ Percentage of Conversion Expense:

rounded to nearest dollar( this is total conversion cost)

100%-65% sama dengan 35%

Transformation Cost $628, 571. 00

Much less Direct Labor Cost $220, 000. 00

Manufacturing Overhead $408, 571. 00

Cost of Goods Made:

Cost of Products Available for Sale $1, 020, 000. 00

Less: finished goods inventory, beginning 35 dollars, 000. 00

Expense of Goods Manufactured $985, 500. 00

The easiest way to carry on from this point is usually to place each of the amounts which can be known in a partially

accomplished schedule of cost of items manufactured and a partially completed cash flow statement. Then

fill in the missing sums by studying the readily available data.

Direct Materials:

Raw Materials Products on hand, beginning $41, 000. 00

Add: Buys of Unprocessed trash $325, 500. 00

Recycleables Available for use $366, 500. 00

Take: Raw Materials inventory, ending $41, 000. 00

Raw Materials Employed in Production ( See above) $325, 000. 00

Direct Labor Cost $220, 000. 00

Production Overhead Expense (See Above) $408, 571. 00

Total Manufacturing Costs $953, 571. 00

Add: Work in Procedure inventory, commencing $56, 1000. 00

$1, 009, 571. 00

Deduct: Operate Process inventory, ending $56, 000. 00

Expense of Goods Manufactured $985, 1000. 00

Therefore , A is...