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11 July, 18:52

The following balances are from the accounts of Hill Components:

January 1 (Beginning) December 31 (Ending)

Direct materials inventory $ 22,300 $ 25,400

Work-in-process inventory 33,000 29,400

Finished goods inventory 5,500 6,600

Direct materials used during the year amount to $46,100, and the cost of goods sold for the year was $53,100.

Find the cost of direct materials purchased during the year.

Find the cost of goods manufactured during the year.

Find the total manufacturing costs incurred during the year.

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Answers (1)
  1. 11 July, 20:11
    0
    1. $49,200

    2. $54,200

    3. $50,600

    Explanation:

    The computations are shown below:

    We know that

    1. Cost of the direct materials used = Beginning Raw materials inventory balance + raw materials purchases - ending Raw materials inventory balance

    $46,100 = $22,300 + raw material purchased - $25,400

    $46,100 = - $3,100

    So, the cost of raw material purchased would be

    = $46,100 + $3,100

    = $49,200

    2. Cost of goods manufactured would be

    = Cost of goods sold - beginning finished goods inventory + ending finished goods inventory

    = $53,100 - $5,500 + $6,600

    = $54,200

    3. The total manufacturing costs incurred would be

    = Cost of goods manufactured - beginning work in process inventory + ending work in process inventory

    = $54,200 - $33,000 + $29,400

    = $50,600
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