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Consider the information provided in the following three (3) independent cases A, B and C. Calculate the missing values and choose the correct answer from the options provided. CASE ACASE BCASE C RRRRaw materials inventory, beginningBlank 152 50032 400Purchases209 000105 000Blank 2Raw materials, ending65 40084 00054 000Direct material used326 000Blank 3216 000Direct labour432 000262 500Blank 4Manufacturing overheadsBlank 5210 000220 000Current manufacturing costsBlank 6Blank 7702 000Work-in-process inventory, beginning108 600157 500Blank 8Work-in-process inventory, ending214 600168 000378 000Cost of goods manufactured980 000Blank 91 135 000Finished goods inventory, beginning223 000189 000Blank 10Finished goods inventory, ending545 900109 000108 000Cost of goods soldBlank 11Blank 121 058 400

Question

Consider the information provided in the following three (3) independent cases A, B and C. Calculate the missing values and choose the correct answer from the options provided. CASE ACASE BCASE C RRRRaw materials inventory, beginningBlank 152 50032 400Purchases209 000105 000Blank 2Raw materials, ending65 40084 00054 000Direct material used326 000Blank 3216 000Direct labour432 000262 500Blank 4Manufacturing overheadsBlank 5210 000220 000Current manufacturing costsBlank 6Blank 7702 000Work-in-process inventory, beginning108 600157 500Blank 8Work-in-process inventory, ending214 600168 000378 000Cost of goods manufactured980 000Blank 91 135 000Finished goods inventory, beginning223 000189 000Blank 10Finished goods inventory, ending545 900109 000108 000Cost of goods soldBlank 11Blank 121 058 400

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Solution

Sure, let's calculate the missing values for each case:

CASE A:

  1. Raw materials inventory, beginning = Direct material used + Raw materials, ending - Purchases = 326,000 + 65,400 - 209,000 = 182,400
  2. Manufacturing overheads = Current manufacturing costs - Direct material used - Direct labour = 980,000 - 326,000 - 432,000 = 222,000
  3. Current manufacturing costs = Direct material used + Direct labour + Manufacturing overheads = 326,000 + 432,000 + 222,000 = 980,000
  4. Cost of goods sold = Finished goods inventory, beginning + Cost of goods manufactured - Finished goods inventory, ending = 223,000 + 980,000 - 545,900 = 657,100

CASE B:

  1. Direct material used = Raw materials inventory, beginning + Purchases - Raw materials, ending = 152,500 + 105,000 - 84,000 = 173,500
  2. Current manufacturing costs = Direct material used + Direct labour + Manufacturing overheads = 173,500 + 262,500 + 210,000 = 646,000
  3. Cost of goods manufactured = Current manufacturing costs + Work-in-process inventory, beginning - Work-in-process inventory, ending = 646,000 + 157,500 - 168,000 = 635,500
  4. Cost of goods sold = Finished goods inventory, beginning + Cost of goods manufactured - Finished goods inventory, ending = 189,000 + 635,500 - 109,000 = 715,500

CASE C:

  1. Purchases = Direct material used + Raw materials, ending - Raw materials inventory, beginning = 216,000 + 54,000 - 32,400 = 237,600
  2. Direct labour = Current manufacturing costs - Direct material used - Manufacturing overheads = 702,000 - 216,000 - 220,000 = 266,000
  3. Work-in-process inventory, beginning = Work-in-process inventory, ending - Cost of goods manufactured + Current manufacturing costs = 378,000 - 1,135,000 + 702,000 = -55,000 (This value cannot be negative, so there might be a mistake in the provided data)
  4. Finished goods inventory, beginning = Finished goods inventory, ending + Cost of goods sold - Cost of goods manufactured = 108,000 + 1,058,400 - 1,135,000 = 31,400

Please note that the calculations are based on the assumption that the provided data is correct. If there is a mistake in the data, the results will also be incorrect.

This problem has been solved

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