20 Minutes, Easy PROBLEM 16.3B
ISP, INC.
a. Purchases of direct materials 260,000$
b. Cost of direct materials used:
Materials inventory, beginning of year 10,000$
Add: Purchases of direct materials 260,000
e. Overhead rate:
Overhead assigned during the year 210,000$
Direct labor costs assigned to production 140,000$
Overhead rate, stated as a percentage of direct labor cost
($210,000 ÷ $140,000) 150%
g. Cost of finished goods manufactured 608,000$
PROBLEM 16.3B
ISP, INC. (concluded)
20 Minutes, Easy PROBLEM 16.4B
PAYBACK CORPORATION
a. Purchases of direct materials 360,000$
b. Cost of direct materials used:
Materials inventory, beginning of year 18,000$
Add: Purchases of direct materials 360,000
f. Direct materials used (part b)364,000$
Direct labor costs assigned to production 230,000
Manufacturing overhead applied to production 400,000
Total manufacturing costs charged to work in process 994,000$
35 Minutes, Medium PROBLEM 16.5B
VALLEYVIEW MANUFACTURING
a. (1) Direct materials purchased 225,000$
(2) Direct materials used:
Materials inventory, beginning of year 25,000$
(3) Payments of direct labor payrolls 200,000$
(4) Direct labor cost assigned to production 210,000$
PROBLEM 16.5B
VALLEYVIEW MANUFACTURING (concluded)
b.
Work in process inventory, beginning of year 8,000$
Add: Manufacturing costs assigned to production:
Direct materials used [part a(2)] 235,000$
Direct labor 210,000
VALLEYVIEW MANUFACTURING CORP.
Schedule of the Cost of Finished Goods Manufactured
For the Year Ended December 31, 20__
35 Minutes, Strong PROBLEM 16.6B
COLUMBUS TOY CO.
a.
Work in process inventor
y
, Jan. 1 5,000$
Add: Manufacturin
g
costs assi
g
ned to production:
Direct materials used 402,000$
Direct labor assi
g
ned to production 220,000
COLUMBUS TOY CO.
Schedule of the Cost of Finished Goods Manufactured—Old Joe
For the Year Ended Dec. 31
PROBLEM 16.6B
COLUMBUS TOY CO. (concluded)
e. Direct labor is a product cost, and therefore, it becomes “attached” to the products
manufactured. To the extent that units manufactured during the year were sold in that
25 Minutes, Medium PROBLEM 16.7B
CEDAR COMPANY
a.
Work in process inventory, January 1 49,000$
Add: Manufacturing costs assigned to production:
Direct materials used (1)328,000$
Direct labor 410,000
CEDAR COMPANY
Schedule of the Cost of Finished Goods Manufactured
For the Year Ended December 31, 20__