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    Cost calculations

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    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?

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    https://brainmass.com/business/total-quality-management/87550

    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