Question

The Foxboro Manufacturing Company provided you with the following information for the fiscal year ended December 31. Work-in-process inventory, 12/31 $ 57,900 Finished goods inventory, 1/1 307,400 Direct labor costs incurred 1,004,300 Manufacturing overhead costs 2,693,400 Direct materials inventory, 1/1 250,800 Finished goods inventory, 12/31 511,000 Direct materials purchased 1,750,200 Work-in-process inventory, 1/1 101,000 Direct materials inventory, 12/31 169,400 Required: (a) Compute the total manufacturing costs incurred during the year. (b) Compute the total work-in-process during the year. (c) Compute the cost of goods manufactured during the year. (d) Compute the cost of goods sold during the year. (e) Compute the total prime costs for the year. (f) Compute the total conversion costs for the year.

Answer 1

Step-by-step explanation:

The computations are shown below:

a. For total manufacturing cost

Total manufacturing cost = cost of direct materials used + direct labor cost + overhead cost

where,

Cost of direct materials used = Opening Direct materials inventory + Direct materials purchased - ending Direct materials inventory

= $250,800 + $1,750,200 - $169,400

= $1,831,600

So, the total manufacturing cost is

= $1,831,600 + $1,004,300 + $2,693,400

= $5,529,300

b. For total work-in-process:

= Total manufacturing cost + beginning Work-in-process inventory

= $5,529,300 + $101,000

= $5,630,300

c. For cost of goods manufactured

Cost of goods manufactured = Opening work in process + Manufacturing cost - ending work in process

= $101,000 + $5,529,300 - $57,900

= $5,572,400

d. For cost of goods sold

= Beginning finished goods + Cost of goods manufactured - ending finished goods

= $511,000 + $5,572,400 - $307,400

= $5,368,800

e. For prime cost:

= Raw material used + Direct labor

= $1,831,600 + $1,004,300

= $2,835,900

f. For conversion cost

= Direct labor + Manufacturing overhead costs

= $1,004,300 + $2,693,400

= $3,697,700