Req. 1 The ending inventory costs derived from the following schedule are: Raw materials $143,000, Work in process $239,000, and Finished goods $150,000. PowerBox Inventory Reconstruction Schedule Raw materials inventory Work in Process Inventory Finished Goods Inventory Beginning Beginning Beginning inventory $113,000 (G) Inventory $ 229,000 (G) inventory $ 154,000 (G) + Direct Materials + Cost of goods + Purchases 476,000 (G) Used 446,000e manufactured 1,186,000c + Direct labor 505,000 (G) + Manufacturing Overhead 245,000 (G) = Direct = Total Materials manufacturing available for costs to = Cost of goods use 589,000 account for 1,425,000 (G) available for sale 1,340,000 (G) Ending − inventory 143,000f Ending inventory 239,000d Ending inventory 150,000b − − = Direct Materials = Cost of goods = Cost of goods used $446,000e manufactured $1,186,000c Sold $1,190,000a (G) = Amount given in the case. aCost of good sold: × (1 profit %) = Cost of goods sold − $1,700,000 × 70% = $1,190,000 bEnding finished goods inventory: Cost of goods available for sale Ending finished inventory = Cost of goods sold − $1,340,000 Ending finished goods inventory = $1,190,000 − Ending finished goods inventory = $ 150,000 cCost of goods manufactured: Beginning finished goods inventory + Cost of goods manufactured = Cost of goods available for sale $154,000 + Cost of goods manufactured = $1,340,000 Cost of goods manufactured = $1,186,000 dEnding work in process inventory: Total manufacturing Ending work in process inventory = Cost of − to account manufactured for $1,425,000 Ending work in process inventory = $1,186,000 − Ending work in process inventory = $ 239,000 (continued) A2-61 eDirect materials used:
Req. 1 The ending inventory costs derived from the following schedule are: Raw materials $143,000, Work in process $239,000, and Finished goods $150,000. PowerBox Inventory Reconstruction Schedule Raw materials inventory Work in Process Inventory Finished Goods Inventory Beginning inventory $113,000 (G) Beginning Inventory $ 229,000 (G) Beginning inventory $ 154,000 (G) + Purchases 476,000 (G) + Direct Materials Used 446,000e + Cost of goods manufactured 1,186,000c + Direct labor 505,000 (G) + Manufacturing Overhead 245,000 (G) = Direct Materials available for use 589,000 = Total manufacturing costs to account for 1,425,000 (G) = Cost of goods available for sale 1,340,000 (G) − Ending inventory 143,000f − Ending inventory 239,000d − Ending inventory 150,000b = Direct Materials used $446,000e = Cost of goods manufactured $1,186,000c = Cost of goods Sold $1,190,000a (G) = Amount given in the case. aCost of good sold: × (1 − profit %) = Cost of goods sold $1,700,000 × 70% = $1,190,000 bEnding finished goods inventory: Cost of goods available for sale − Ending finished inventory = Cost of goods sold $1,340,000 − Ending finished goods inventory = $1,190,000 Ending finished goods inventory = $ 150,000 cCost of goods manufactured: Beginning finished goods inventory + Cost of goods manufactured = Cost of goods available for sale $154,000 + Cost of goods manufactured = $1,340,000 Cost of goods manufactured = $1,186,000 dEnding work in process inventory: Total manufacturing to account for − Ending work in process inventory = Cost of manufactured $1,425,000 − Ending work in process inventory = $1,186,000 Ending work in process inventory = $ 239,000 (continued) A2-61 eDirect materials used:
Solution-Manual-for-Managerial-Accounting-3E-3rd-Edition.docx