Cost of goods in process and finish goods inventory

Reference no: EM13151741

Santana Company's ending Goods in Process Inventory account consists of 10,000 units of partially completed product, and its Finished Goods Inventory account consists of 12,000 units of product. The factory manager determines that Goods in Process Inventory includes direct materials cost of $20 per unit and direct labor cost of $14 per unit. Finished goods are estimated to have $24 of direct materials cost per unit and $18 of direct labor cost per unit. The company established the predetermined overhead rate using the following predictions: estimated direct labor cost, $600,000, and estimated factory overhead, $750,000. The company allocates factory overhead to its goods in process and finished goods inventories based on direct labor cost. During the period, the company incurred these costs: direct materials, $1,070,000; direct labor, $580,000; and factory overhead applied, $725,000.

How do you compute total cost of goods in process/finish goods inventory?

Reference no: EM13151741

Questions Cloud

Investing limited partnership : In 2010, Emily invests $100,000 in a limited partnership that is not a passive activity. During 2010, her share of the partnership loss is $70,000. In 2011, her share of the partnership loss is $50,000. How much can Emily deduct in 2010 and 2011?

Variable overhead spending-fixed overhead budget variances : The actual level of activity for the period was 4,600 MHs. What was the total of the variable overhead spending and fixed overhead budget variances for the month?

What volume of a 0.33 m mg(no_3)_2 solution : What volume of a 0.33 M Mg(NO_3)_2 solution contains 97 g of Mg(NO_3)_2?

Country that produces only cheese : It trades with a country that produces only cheese, and the currency of that country is crowns. The real exchange rate, e, equals 5 wedges of cheese per bottle of wine. The foreign price level is 20 crowns per wedge of cheese, and the domestic money ..

Cost of goods in process and finish goods inventory : How do you compute total cost of goods in process/finish goods inventory?

Requires payment for each snack purchased : Why is a vending machine, which requires payment for each snack purchased, used to sell snacks, while a newspaper can be sold out of a box that allows anyone to take more than one paper?

What affect might our concern for the baby boomers : What affect might our concern for the baby boomers reaching retirement age, and the smallest number workers supporting the largest number of retirees drawing social security, have on our views regarding mandatory retirement.

What is the change in internal energy of the system : A system absorbs 295 kJ of heat and the surroundings do 177 kJ of work on the system. What is the change in internal energy of the system?

Find the probability that ball transferred from urn is red : A ball is then selected at random from urn 2. if the ball selected from urn 2 is red, what is the probability that the ball transferred from urn 1 was...(i)red?

User Account

All Pages