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Cost of goods manufactured during the period

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Reference no: EM13335145

Problem 1: Beginning raw materials $5600 Ending raw materials $4200 Direct Labor $17,250 Raw materials purchases $7400 Depreciation of factory equipment $6750 Factory repairs and maintenance $3300 Beginning finished goods inventory $10800 Ending finished goods inventory $8900 Beginning goods in process inventory $5350 Ending goods in process inventory $6300 OH application rate 60% of DL

a) Calculate the cost of materials used.

(b) Calculate the manufacturing costs incurred during the period.

(c) Calculate the Cost of Goods Manufactured during the period.

(d) Calculate the Cost of Goods Sold during the period.

(e) Calculate the amount by which overhead is under- or over-applied.

PROBLEM 2 David, Inc. is preparing its master budget for the second quarter. The following sales and production data have been forecasted: April May June July August Unit Sales 400 500 520 480 540 Finished goods inventory on March 31: 120 units Raw materials inventory on March 31: 450 pounds Desired ending inventory each month: Finished goods:30% of next month's sales Raw materials:25% of next month's production needs Number of pounds of raw material required per finished unit: 4 lb. Number of direct labor hours to produce each unit: 3 hours Labor rate per hour: $10

(a) How many units should be produced during April and May?

(b) How many pounds of raw materials should be purchased in April?

(c) What is the budgeted labor cost for April?

PROBLEM 3 A company is considering a proposal to invest $30,000 in a project that would provide the following net cash flows: Year 1 $6500 Year 2 $10,700 Year 3 $15,000 Year 4 $12,800

(a) Compute the project's payback period.

(b) Compute the net present value of the project assuming a 10% discount rate with the following factors: PV factors for $1(yr 1: 0.9091; yr 2: 0.8264; yr 3:0 .7513; yr 4: 0.6830)

(c) Should the company invest in the machine? Why or why not?

Reference no: EM13335145

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