1. The balances in the perpetual inventory accounts of Valley view Manufacturing Corporation at the beginning and end of the current year are as follows:
End of Year
Beginning of Year
Inventory accounts:
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$15,000
$25,000
Work in Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10,000
8,000
Finished Goods Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24,000
30,000
Total dollar amounts debited and credited during the year to the accounts used in recording manufacturing activities are as follows:
Debit Entries
Credit Entries
Account:
Materials Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$225,000
$ ?
Direct Labour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
200,000
210,000
Manufacturing Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
420,000
420,000
Work in Process Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
?
?
Finished Goods Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
?
?
Instructions
- Using these data, state or compute for the year the following amounts:
- Direct materials purchased.
- Direct materials used.
- Payments of direct labour payrolls.
- Direct labour cost assigned to production.
- The overhead assigned to production stated as a percentage of direct labour costs.
- Total manufacturing costs charged to the Work in Process Inventory account during the year.
- The cost of finished goods manufactured.
- The cost of goods sold.
