Essay About Direct Materials Cost And Factory Overhead

Accounting
Accounting
EX 19-2
Cost of goods sold:
Sales
$775,000
Less gross profit
265,000
Cost of goods sold
$510,000
Direct materials cost:
Materials purchased
$303,000
Less:
Indirect materials
32,000
Materials inventory
35,000
67,000
Direct materials cost
$236,000
Direct labor cost:
Total manufacturing costs for the period
$620,000
Less:
Direct materials cost
$236,000
Factory overhead
112,500
348,500
Direct labor cost
$271,500
EX 19-10
Predetermined overhead rate 1,400,000/30,625 = $45.71 per labor hour
EX 19-14
WRECKIN RONNIE, INC.
Income Statement
For the Month Ended July 31, 2008
Revenues
$520,000
Cost of goods sold
301,300
Gross profit
$218,700
Selling expenses
$119,000
Administrative expenses
52,100
171,100
Income from operations
47,600
Materials inventory:
Purchased materials
$165,800
Less: Materials used in production
147,600
Materials inventory, July 31
18,200
Work in process inventory:
Materials used in production
$147,600
Direct labor
96,250
Factory overhead (80% × $96,250)
77,000
Additions to work in process
$320,850
Less: Transferred to finished goods
302,900
Work in process inventory, July 31
17,950
Finished goods inventory:
Transferred to finished goods
$302,900
Less: Cost of goods sold
301,300
Finished goods inventory, July 31
1,600
PR 19-1A
Materials purchased to account, $233,000.
Raw Materials Inventory $233,000
Accounts Payable $233,000
Materials purchased on credit
Materials requisitioned, $208,300, of which $5,600 was for general factory use.
Work In Process Inventory $202,700
Factory Overheads – Indirect materials $5,600
Raw Materials Inventory $208,300
Materials requisitioned and used – Indirect materials
$5,600
Factory labor used, $190,500, of which $62,500 was indirect.
Work In Process Inventory $128,000