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Harriman finished goods, Geneva cost of goods manufactured

See attached file for proper format of tables.

1. The following data pertain to Harriman Company's operations during July:

July 1 July 31
Raw materials inventory $0 $3,900
Work in process inventory ? $2,300
Finished goods inventory $13,400 ?

Other data:
Cost of goods manufactured $106,000
Raw materials used $41,300
Manufacturing overhead costs $21,800
Direct labor costs $39,400
Gross profit $100,700
Sales $210,800

The ending finished goods inventory was:

a.$13,400

b.$15,700

c.$9,300

d. $19,500

2. Geneva Steel Corporation produces large sheets of heavy gauge steel. The company showed the following amounts relating to its production for the year just completed:

Direct materials used in production $111,900
Direct labor costs for the year $54,100
Work in process, beginning $22,400
Finished goods, beginning $46,700
Cost of goods available for sale $288,400
Cost of goods sold $239,300
Work in process, ending $15,700

Cost of goods manufactured for the year was:

$158,700

$169,700

$241,700

$246,000

3. Loraine Company applies manufacturing overhead to jobs using a predetermined overhead rate of 68% of direct labor cost. Any underapplied or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month. During August, the following transactions were recorded by the company:

Raw materials (all direct materials):
Purchased during the month $10,000
Used in production $21,000
Labor:
Direct labor hours worked during the month 1,600
Direct labor cost incurred $26,100
Indirect labor cost incurred $7,500
Manufacturing overhead costs incurred (total) $19,800
Inventories:
Raw materials (all direct) August 31 $8,800
Work in process, August 1 $8,800
Work in process, August 31* $13,800

*contains $4,600 of direct labor cost

The entry to dispose of the underapplied or overapplied overhead cost for the month would include:

a. a credit of $2,052 to the Manufacturing Overhead Account.

b. a debit of $7,500 to Cost of Goods Sold.

c. a credit of $2,052 to Cost of Goods Sold.

d. a credit of $4,600 to Manufacturing Overhead.

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1. The following data pertain to Harriman Company's operations during July:

July 1 July 31
Raw materials inventory $0 $3,900
Work in process inventory ? $2,300
Finished goods inventory $13,400 ?

Other data:
Cost of goods manufactured $106,000
Raw materials used $41,300
Manufacturing overhead costs $21,800
Direct labor costs $39,400
Gross profit $100,700
Sales $210,800

The ending finished goods inventory was:

a.$13,400

b.$15,700

c.$9,300

d. $19,500

Here are the things that make the accounts rise and fall:
Raw Materials:
RM beg
+ purchase
- used
= End RM

Work in Process:
WIP beg
+ DM used
+DL/OH (conversion costs)
- Finished
= End WIP

Finished Goods:
Beg
+ finished
- COGS
= End

Now, take the data and ...

Solution Summary

Your tutorial shows you what impacts these accounts and then drops in the given amounts so you can see how to solve it.

$2.19