Principles of Accounting II: Factory Overhead, Direct Material

School: University of Iowa - Course: BUSI 202 - Subject: Accounting

Principles of Accounting II Chapter 15 In Class Assignment Spring 2023 Exercise 2 a.Factory overhead b.Direct material cost c.Factory overhead d.Direct material cost e.Direct material cost f.Factory overhead g.Direct material cost h.Factory overhead i.Direct material cost j.Direct labor cost

Exercise 5 a.Cost object b.Product c.Conversion d.Operational planning e.Cost f.Work in process inventory g.Decrease

a. Sales$1,200,000 Cost of Goods Sold675,000 Gross Profit$ 525,000 Less Selling Expenses 215,000 Administrative Exp125,000340,000 Net Income$ 185,000 b. Raw Material Inventory Beginning Balance $0 Materials Purchased250,000 Materials Available $250,000 Less: Materials Used in Production 180,000 Ending Inventory Balance$70,000 Work in Process Inventory Beginning Balance$0 Materials Added 180,000 Direct Labor 450,000 Overhead Incurred180,000 Manufacturing Costs this month$810,000 Total Costs Available 810,000 Transferred to Finished Goods 760,000 Work in Process Inventory$ 50,000

Finished Goods Beginning Balance $0 Transferred from Work in Process760,000 Available for Sale 760,000 Cost of Goods Sold 675,000 Ending Finished Goods Inventory$ 85,000