Cost flows-prime cost and conversion costs

Assignment Help Managerial Accounting
Reference no: EM1350228

Custom Fiberglass Products had the following inventory balances at the beginning and ending of August 2007:

August 1 August 31

Raw materials inventory $16,900 $21,700
Work-in-Process inventory 32,100 29,600
Finished goods inventory 25,800 22,600

During August, the company purchased $90,000 of raw materials. All, raw materials are considered direct materials. Total labor payroll for the month was $78,000. Direct labor employees were paid $9 per hour and worked 6,800 hours in August. Total factory overhead charges for the period were $109,300.
Required:

1. Determine the prime cost added to production during August.

2. Determine the conversion cost added to production during August.

3. Determine the cost of goods manufactured in August.

4. Determine the cost of goods sold in August.

Reference no: EM1350228

Questions Cloud

Which policy do you believe would be more effective : Which policy do you believe would be more effective in the short term for accomplishing these goals.
Controversial evolutionary perspective : David Buss (1989, 2003) has proposed a controversial evolutionary perspective to describe the process of mate selection. Critically analyze this evolutionary perspective.
The total of the monthly cash payments : Dixon Corporation incurs a 30-year $700,000 mortgage liability in conjunction with its purchase of a candy factory. This mortgage is payable in equal monthly payments of $3,758 which include interest computed at an annual rate of 5 percent.
Find the change in entropy of the surrounding air : An electric motor rotating a workshop grinding wheel at a rate of 107 rev/min is switched off. Assume the wheel has the constant negative angular acceleration of magnitude 1.70 rad/s2.
Cost flows-prime cost and conversion costs : Custom Fiberglass Products had the following inventory balances at the beginning and ending of August 2007: Determine the prime cost added to production during August. Determine the conversion cost added to production during August.
Understanding the process of romantic love : Hazan and Shaver (1987) were the first to conceptualize romantic love as an attachment process. Analyze attachment theory as it applies to understanding the process of romantic love.
Evalute the probability that the company : Evalute the probability that the company A defaults during the next year assuming that the CDS is priced in a way that makes the expected profit from selling the CDS as zero, and assuming that default probabilities do not vary during the 5 years.
What type of conflict is described between x-y and z : What type of conflict is that, and how should it be resolved - What type of conflict is described
Wireless technology to benefit related working environment : Explain how airlines, construction industry, the medical field, and education use wireless technology to benefit related working environments?

Reviews

Write a Review

 

Managerial Accounting Questions & Answers

  Determining inspection cost

A company is considering additional final inspection costs of $1 per unit before delivery to customers. It currently delivers 60,000 units per year.

  Question on total fixed cost

Borderbooks Company has two locations, downtown and at a suburban mall. During March, the company reported net income of $271,000 and sales of $1.2 million.

  Cost of goods manufactured-cost of goods sold

During the year, the company purchased $100,000 of raw material and spent $340,000 on direct labor. Other data: Manufacturing overhead incurred $450,000; sales, $1,560,000; selling and administrative expenses, $90,000; income tax rate, 30%.

  Working capital-cash conversion cycle

A new computer system allows your firm to more accurately monitor inventory and anticipate future inventory shortfalls. As a result, the firm feels more able to pare down its inventory levels. What effect will the new system have on working capita..

  Prepare flexible budget several levels

Make a flexible budget for following levels of production: 18,000 units, 20,000 units, and 22,000 units. Find out the flexible budget formula for the year ended December 31?

  Question on personal budget

You're interested in developing the budget but are struggling with basics - do the numbers have to be exact? Can a budget have any flexibility in it? First, describe what a budget is.

  Imperial data devices flexible budget

Expected manufacturing costs for Imperial Data Devices are as follows: Estimate manufacturing costs for production levels of 11,000 units, 13,500 units, and 16,000 units per month.

  Question on standard price per kilogram

Misemer Corporation is developing standards for its products. One product requires an input that is purchased for $57.00 per kilogram from the supplier.

  Jackson construction company-job order costing system

Jackson Construction Company uses a job order costing system. In May 2008, Jackson made a $1,650,000 bid to build a pedestrian overpass over the beach highway in Gulfport, Mississippi.

  Prepare cost of goods manufactured and sold schedules

Prepare a schedule of cost of goods manufactured for the month. Prepare a schedule of cost of goods sold for the month.

  Traditional costing and activity-based costing

What should the Manhattan Company do to improve its profitability? Consider pricing and product-level changes among your suggest. Who should be involved in implementing your recommendations?

  Examining cost variances

Consider your professional experiences as well as your review of the Required and/or Optional Resources and determine what type of variances might be the most alarming to see. What type of inventory control considerations do you think are occurring..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd