2–3

Chapter 2 Homework Solutions

2?3

1. Direct materials used = $50,800 + $150,000 ? $21,500 = $179,300

2. Direct materials......................................................... Direct labor................................................................ Overhead ................................................................... Total manufacturing cost......................................... Add: Beginning WIP ................................................. Less: Ending WIP ..................................................... Cost of goods manufactured...................................

$ 179,300 200,000 324,700

$ 704,000 58,500 (23,500)

$ 739,000

Unit cost of goods manufactured = $739,000/100,000 = $7.39

3. Direct labor = $7.39 ? $1.70 ? $3.24 = $2.45 Prime cost = $1.70 + $2.45 = $4.15 Conversion cost = $2.45 + $3.24 = $5.69

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1.

Beckman Company

Statement of Cost of Goods Manufactured

For the Month of November

Direct materials: Beginning inventory.................................. Add: Purchases ......................................... Materials available..................................... Less: Ending inventory............................. Direct materials used in production ........

Direct labor........................................................ Manufacturing overhead .................................. Total manufacturing costs added ................... Add: Beginning work in process..................... Less: Ending work in process......................... Cost of goods manufactured...........................

$ 48,500 70,000

$ 118,500 (15,900)

$ 102,600 22,000

216,850 $ 341,450

10,000 (6,050) $ 345,400

2.

Beckman Company

Statement of Cost of Goods Sold

For the Month of November

Cost of goods manufactured................................................... Add: Beginning finished goods inventory ............................. Cost of goods available for sale.............................................. Less: Ending finished goods inventory ................................. Cost of goods sold ...................................................................

$ 345,400 10,075

$ 355,475 (8,475)

$ 347,000

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