Question

Determine each of the following missing amounts: (Input all amounts as positive values)

Determine each of the following missing amounts: (Input all amounts as positive values) Firm A Firm B Firm C Beginning raw materials inventory 17,000 50,400 86,400 271,200 Purchases of raw materials during the year Raw materials available for use 107,100 Ending raw materials inventory 12,000 61,200 Cost of raw materials used 90,000 90,900 130,000 381,600 Direct labor costs incurred 30,600 Variable manufacturing overhead applied 86,400 54,000 Fixed manufacturing overhead applied 100,000 370,000 Total manufacturing costs incurred Beginning work in process 15,000 6,300 22,800 25,000 Ending work in process 9,900 19,200 Cost of goods manufactured 239,400 369,000 Sales Beginning finished goods inventory 30,000 73,200 Cost of goods manufactured 239,400 Cost of goods available for sale 913,200 272,700 Ending finished goods inventory 50,000 57,600 Cost of goods sold 245,700 237,600 140,000 Gross profit Selling, general, and administrative expenses 68,000 Income from operations 28,800 106,800 %24

Answer 1

SOLUTION:
	FIRM A	FIRM B	FIRM C
Beginning Raw Material	17000	20700	50400
Purchase of raw material during the year	85000	86400	271200
Raw material available for use	102000	107100	321600
Ending raw material inventory	12000	16200	61200
Cost of raw materials used	90000	90900	260400
Direct Labour cost incurred	130000	63900	381600
Variable manufacturing overhead applied	50000	30600	86400
Fixed manufacturing overhead applied	100000	54000	108000
Total Manufaturing cost incurred	370000	239400	836400
Beginning work in process	15000	6300	22800
Ending work in process	25000	9900	19200
Cost of Goods Manufactured	360000	239400	840000
Sales	480000	369000	1093200
Beginning Finished Goods inventory	30000	33300	73200
Cost of Goods Manufactured	360000	239400	840000
Cost of Goods Available for Sales	390000	272700	913200
Ending finished goods inventory	50000	27000	57600
Cost of Goods Sold	340000	245700	855600
Gross Profit	140000	123300	237600
Selling, General and administrative Expenses	68000	94500	130800
Income from operation	72000	28800	106800