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Cost calculations

The ABC Corporation shows the following data in its accounting records for the most recently completed year:

Sales $900

Purchases of raw materials $200

Direct labor $150

Manufacturing overhead $250

Administrative expenses $150

Selling expenses $130

Raw materials inventory, beginning $80

Raw materials inventory, ending $30

Work in process inventory, beginning $70

Work in process inventory, ending $28

Finished goods inventory, beginning $100

Finished goods inventory, ending $120

Questions:

a) What was the amount of Raw Materials used for the year?

b) What were the total Manufacturing costs for the year?

c) What were the total prime costs for the year?

d) What were the total conversion costs for the year?

e) What were the total Cost of Goods Manufactured for the year?

Solution Preview

Questions:

What was the amount of Raw Materials used for the year? (2 points)

Raw materials inventory, beginning= $80 (Given)
Add Purchases of raw materials= $200 (Given)
Raw materials available for use= $280 =80 + 200
Less Raw materials inventory, ending= ($30) (Given)
Amount of raw materials used= $250 =280 -30

Answer: Amount of raw materials used= $250

What were the total Manufacturing costs for the year? (2 ...

Solution Summary

The solution calculates amount of raw materials, total manufacturing costs, total prime costs, total conversion costs, total cost of goods manufactured for the year.

$2.19