contestada

For fiscal year 2016, Nancy calculated the following costs for Choco-rama’s manufacturing process. Beginning work in process inventory, $22,655 Ending work in process inventory, $28,207 Beginning raw materials inventory, $42,385 Ending raw materials inventory, $44,299 Raw materials purchased, $387,521 Office supplies purchased and used, $15,274 388,400 man-hours of factory labor incurred at $23.60/hour 14,200 man-hours of factory oversight labor incurred at $28.75/hour Administrative salaries, $392,000 Factory utilities, $18,500 Factory depreciation, $9,700 Factory repairs, $15,400

Respuesta :

Answer:

The Cost of Manufactured Goods                                                   9,998,145

Explanation:

The question is to determine Choco-rama's Cost of Goods Manufactured for the 2016 Fiscal Year.

CHOCO RAMA COST OF GOODS MANUFACTURED FOR THE 2016 FISCAL YEAR

Description                                                  Amount ($)             Amount ($)

Opening Inventory of Raw materials                                             42,385

Add: Purchase of raw materials                                                     387,521

Direct raw materials available                                                       429,906

Subtract: Closing raw materials                                                      (44,299)

Raw materials in Production                                                          385,607

Add:

Direct labour  ($388,400 x $23.60)                                                9,166,240

Manufacturing overhead                                                                  451,850                      

The total manufacturing costs                                                       10,003,697

Add: Opening Work-in-Progress                                                      22,655

                                                                                                         10,026,352

Subtract: Closing work-in-progress                                                  (28,207)

The Cost of Manufactured Goods                                                   9,998,145