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Detailed Cost Accounting Calculations

Helmer Sporting Goods Company manufactured 100,000 units in 20X5 and reported the following costs:

Sandpaper $ 32,000 Leasing costs- Plant 384,000
Materials handling $ 320,000 Depreciation- equipment 224,000
Coolants & lubricants $ 22,440 Property taxes-equipment 32,000
Indirect Manufacturing $ 275,200 Fire Ins- equip 16,000
Direct Manufacturing labor$ 2,176,000 Direct mat. purchases 3,136,000
Direct materials, 1/1/X5 $ 384,000 Direct materials, 12/31/ X5 275,200
Finished goods, 1/1/X5 $ 672,000 Sales revenue 12,800,000
Finished goods, 12/31/X5 $ 1,280,000 Sales commissions 640,000
W.I.P 1/1/X5 $ 96,000 Sales Salaries 576,000
W.I.P 64,000 Advertising costs 480,000
Admin Costs 800,000

a. What is the amount of direct materials used during 20X5?
b. What manufacturing costs were added to WIP during 20X5?
c. What is cost of goods manufactured for 20X5?
d. What is the cost of goods sold for 20X5?

Solution Preview

a. Direct material used = Opening Inventory + Purchases - Ending inventory
= 384,000+3,136,000-275,200 = 3,244,800

b. Manufacturing costs added = Direct material used + direct labor + overhead
Direct material ...

Solution Summary

This solution provides a detailed, step by step calculation of the given accounting problems.

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