Bowers Industries' Beginning and Ending Inventories for the Month of September

Question

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The Answer is (a)
Beginning materials inventory $67,000
Plus purchases 163,000
Plus transportation in 4,000
Less purchases returns/allowances (2,000)
Materials available for use 232,000
Less ending materials inventory (62,000)
Materials used $170,000
Prime costs = Materials + Labor = $170,000 + $200,000 = $370,000
(b) Total manufacturing costs = Materials + Labor + Overhead applied
= $170,000 + $200,000 + (70% × $200,000)
= $510,000
(c) Total costs + Beg.Work in Process - Ending Work in Process = Cost of goods transferred to
Finished Goods Inv.
$510,000 + $145,000 - $171,000 = $484,000
(d)

(a) Beginning materials inventory $67,000 Plus purchases 163,000 Plus transportation in 4,000 Less purchases returns/allowances (2,000) Materials available for use 232,000 Less ending materials inventory (62,000) Materials used $170,000 Prime costs = Materials + Labor = $170,000 + $200,000 = $370,000 (b) Total manufacturing costs = Materials + Labor + Overhead applied = $170,000 + $200,000 + (70% × $200,000) = $510,000 (c) Total costs + Beg.Work in Process - Ending Work in Process = Cost of goods transferred to Finished Goods Inv. $510,000 + $145,000 - $171,000 = $484,000 (d)

Bowers Industries' Beginning and Ending Inventories for the Month of September

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Bowers Industries' Beginning and Ending Inventories for the Month of September

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Correct Answer:VerifiedShow Answer

Correct Answer:
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