Evaluate the cost of finished goods inventory

Reference no: EM135599

Ron Williams currently took over as the controller of Johnson Brothers Manufacturing. Last month, the last controller left the company with little notice and left the accounting records in disarray. Ron requires the ending inventory balances to report first quarter numbers.

For the last month (March 2011) Ron was able to piece together the subsequent information:

Direct materials purchased $ 240,000

Work-in-process inventory, 3/1/2011 $ 70,000

Direct materials inventory, 3/1/2011 $ 25,000

Finished goods inventory, 3/1/2011 $ 320,000

Conversion Costs $ 660,000

Total manufacturing costs added during the period $ 840,000

Cost of goods manufactured: 4 times direct materials used

Gross margin as a percentage of revenues 20%

Revenues $1,037,500

Evaluate the cost of:

1. Finished goods inventory, 3/31/2011

2. Work-in-process inventory, 3/31/2011

3. Direct materials inventory, 3/31/2011

Reference no: EM135599

Questions Cloud

Evaluate the acquisition cost of each intangible asset : Reporting and Computing the Acquisition and Amortization of three Different Intangible Assets - Evaluate the acquisition cost of each intangible asset

Determine the total manufacturing cost per unit : Determine the overhead allocation rate using the present traditional volume-based allocation method. Evaluate the total manufacturing cost per unit of each customer using the present allocation method.

Evaluate the total factory overhead spending variance : Under a three-variance breakdown of the net overhead variance, evaluate the total factory overhead spending variance for May.

Evaluate the markup of x currently used : Evaluate the markup of currently used and evaluate the two new rates, one for class A repairs and another for class B repairs, using the similar markup of x that you determined in part a.

Evaluate the cost of finished goods inventory : Evaluate the cost of Finished goods inventory and Work-in-process inventory. Ron requires the ending inventory balances to report first quarter numbers

Evaluate your argument and citing concepts : Pretend you are hired to debate the issue of the proper treatment of options written on a company's own stock. Evaluate your argument, citing concepts and definitions to buttress your case, suppose

Identify revenues and expenses : What journal entry did Spencer and Marks record during the ar ended March 29, 2008, to identify revenues and expenses and What journal entry did Spencer and Marks make to identify sales returns and bad debts expense

What strategies did the management of super bakery : Why did Super Bakerys management believe it was necessary to install an ABC system

Compare all types of evidence : For every situation, show whether the first or second type of evidence is more reliable. Give a rationale for your choice.

User Account

All Pages