Question

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.

Answer 1

1. $49,200

2. $54,200

3. $50,600

Step-by-step 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