Welcome

Anti Essays offers essay examples to help students with their essay writing.

Sign Up

Acct 505 Case Study 1

Open Document

Below is a free excerpt of "Acct 505 Case Study 1" from Anti Essays, your source for free research papers, essays, and term paper examples.

Acct. 505 Managerial Accounting

Case Study I Solution
Week 1
The following cost items are needed before a schedule of cost of goods manufactured can be prepared:
Materials used in production:
Prime Costs
Less Direct Labor Cost
Direct Materials Cost

$
$
$

545,000
220,000
325,000

Manufacturing Overhead Cost:
Direct Labor Cost/ Percentage of Conversion Cost:
rounded to nearest dollar
100%-65% = 35%
Conversion Cost
Less Direct Labor Cost
Manufacturing Overhead

$
$
$

628,500
220,000
408,500

( this is total conversion

100.00%
35.00%
65.00%

Cost of Goods Manufactured:
Cost of Goods Available for Sale
Less: finished goods inventory, beginning
Cost of Goods Manufactured

$ 1,020,000
35,000
$
985,000

The easiest way to proceed from this point is to place all of the amounts that are known in a partially
completed schedule of cost of goods manufactured and a partially completed income statement. Then
fill in the missing amounts by analyzing the available data.
Cost of Goods Manufactured
Direct Materials:
Raw Materials Inventory, beginning
Add: Purchases of Raw Materials
Raw Materials Available for use
Deduct: Raw Materials inventory, ending
Raw Materials Used in Production ( See above)
Direct Labor Cost
Manufacturing Overhead Cost (See Above)

$

$

$41,000
$325,000
$366,000
41,000
$325,000
$220,000
408,500

Total Manufacturing Costs
Add: Work in Process inventory, beginning

$953,500
$56,000

Deduct: Work in Process inventory, ending
Cost of Goods Manufactured

$1,009,500
$24,500
$985,000

Therefore, A is Raw Materials Available for Use
Less: Raw Materials Used in Production
Raw Materials Inventory, Ending

$
$

366,000
(325,000)
41,000

Therefore B is
Work in Process Ending

$24,500

Sales
$1,350,000
Cost of Goods Sold:
Finished Goods Inventory, Beginning
$35,000
Cost of Goods Manufactured
$
985,000
Cost of Goods Available for Sale
$
1,020,000
Deduct:...

Show More


Citations

MLA Citation

"Acct 505 Case Study 1". Anti Essays. 18 Dec. 2018

<http://snehaedu.com/free-essays/Acct-505-Case-Study-1-358548.html>

APA Citation

Acct 505 Case Study 1. Anti Essays. Retrieved December 18, 2018, from the World Wide Web: http://snehaedu.com/free-essays/Acct-505-Case-Study-1-358548.html