The following information comes from the accounting records for Chelsea, Inc., for May:
Direct materials inventory, May 1 $ 18,000 Direct materials inventory, May 31 15,300 Work-in-process inventory, May 1 9,500 Work-in-process inventory, May 31 5,000 Finished goods inventory, May 1 54,100 Finished goods inventory, May 31 73,000 Direct materials purchased during May 84,500 Direct labor costs, May 59,200 Manufacturing overhead, May 79,400
Required:
a. Compute the total prime costs for the month of May.
b. Compute the total conversion costs for the month of May.
c. Compute the total manufacturing costs for the month of May.
d. Compute the cost of goods manufactured for the month of May.
e. Compute the cost of goods sold for the month of May.
The following information comes from the accounting records for Chelsea, Inc., for May:
| Direct materials inventory, May 1 | $ | 18,000 |
| Direct materials inventory, May 31 | 15,300 | |
| Work-in-process inventory, May 1 | 9,500 | |
| Work-in-process inventory, May 31 | 5,000 | |
| Finished goods inventory, May 1 | 54,100 | |
| Finished goods inventory, May 31 | 73,000 | |
| Direct materials purchased during May | 84,500 | |
| Direct labor costs, May | 59,200 | |
| Manufacturing overhead, May | 79,400 | |
Required:
a. Compute the total prime costs for the month of May.
b. Compute the total conversion costs for the month of May.
c. Compute the total manufacturing costs for the month of May.
d. Compute the cost of goods manufactured for the month of May.
e. Compute the cost of goods sold for the month of May.
Related questions
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May:
|
1 |
Rainier Company ($) |
Yakima Company ($) |
|
|
2 |
Materials inventory, May 1 |
100,000.00 |
48,200.00 |
|
3 |
Materials inventory, May 31 |
(a) |
50,000.00 |
|
4 |
Materials purchased |
950,000.00 |
710,000.00 |
|
5 |
Cost of direct materials used in production |
938,500.00 |
(a) |
|
6 |
Direct labor |
2,860,000.00 |
(b) |
|
7 |
Factory overhead |
1,800,000.00 |
446,000.00 |
|
8 |
Total manufacturing costs incurred May |
(b) |
$2,484,200.00 |
|
9 |
Total manufacturing costs |
5,998,500.00 |
2,660,600.00 |
|
10 |
Work in process inventory, May 1 |
400,000.00 |
176,400.00 |
|
11 |
Work in process inventory, May 31 |
382,000.00 |
(c) |
|
12 |
Cost of goods manufactured |
(c) |
2,491,500.00 |
|
13 |
Finished goods inventory, May 1 |
615,000.00 |
190,000.00 |
|
14 |
Finished goods inventory, May 31 |
596,500.00 |
(d) |
|
15 |
Sales |
9,220,000.00 |
4,550,000.00 |
|
16 |
Cost of goods sold |
(d) |
2,470,000.00 |
|
17 |
Gross profit |
(e) |
(e) |
|
18 |
Operating expenses |
1,000,000.00 |
(f) |
|
19 |
Net income |
(f) |
1,500,000.00 |
Required:
-
For both companies, determine the amounts of the missing items (A) through (F), identifying them by letter.
-
Prepare Yakima Company's statement of cost of goods manufactured for May.
-
Prepare Yakima Company's income statement for May.
The controller at Lawrence Components asks for your help in sorting out some cost information. She is called to a meeting, but hands you the following information for April:
| Prime costs, April | $ | 151,000 |
| Total manufacturing costs, April | 270,000 | |
| Cost of goods manufactured, April | 269,000 | |
| Cost of goods sold, April | 220,000 | |
| Direct material inventory, April 30 | 15,300 | |
| Work-in-process inventory, April 1 | 9,700 | |
| Finished goods inventory, April 30 | 79,000 | |
| Direct materials purchased, April | 82,000 | |
| Direct labor costs, April | 57,000 | |
Required:
a. Compute the direct material used for the month of April.
| Direct Material Used | ? |
b. Compute the direct material inventory as of April 1.
| Direct Material Inventory | ? |
c. Compute the conversion cost for the month of April.
| Conversion Cost | ? |
d. Compute the work-in-process inventory as of April 30.
| Work-In-Process Inventory | ? |
e. Compute the manufacturing overhead for the month of April.
| Manufacturing Overhead | ? |
f. Compute the finished goods inventory as of April 1.
| Finished goods inventory | ? |
