Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cost of goods manufactured bobs bistro produces pa

Cost of Goods Manufactured Bobs Bistro produces party-sized hoagie sandwiches. For next year, Bobs Bistro...

80.2K

Verified Solution

Question

Accounting

Cost of Goods Manufactured

Bobs Bistro produces party-sized hoagie sandwiches. For next year, Bobs Bistro predicts that 50,000 units will be produced with the following total costs:

Direct materials ?
Direct labor $72,000
Variable overhead 20,000
Fixed overhead 195,000

Next year, Bobs Bistro expects to purchase $116,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows:

Direct materials Inventory Work-in-Process Inventory
Beginning $7,000 $11,500
Ending $6,900 $13,500

Required:

Question Content Area

1. Prepare a statement of cost of goods manufactured.

Direct materials
Beginning inventoryBeginning work in processDirect laborEnding inventoryEnding work in processBeginning inventory $Beginning inventory
Add: Beginning work in processAdd: Direct laborAdd: Ending inventoryAdd: Ending work in processAdd: PurchasesAdd: Purchases Add: Purchases
Materials available $fill in the blank 0c4032082034046_5
Less: Beginning inventoryLess: Direct laborLess: Direct materialsLess: Ending inventoryLess: PurchasesLess: Ending inventory Less: Ending inventory
Direct materials used in production $fill in the blank 0c4032082034046_8
Beginning inventoryDirect laborEnding inventoryEnding work in processPurchasesDirect labor Direct labor
Beginning inventoryBeginning work in processEnding inventoryEnding work in processManufacturing (Factory) overheadManufacturing (Factory) overhead Manufacturing (Factory) overhead
Total manufacturing costs added $fill in the blank 0c4032082034046_13
Add: Beginning work in processAdd: Direct laborAdd: Ending inventoryAdd: Ending work in processAdd: PurchasesAdd: Beginning work in process Add: Beginning work in process
Less: Beginning work in processLess: Direct laborLess: Ending inventoryLess: Ending work in processLess: PurchasesLess: Ending work in process Less: Ending work in process
Cost of goods manufactured $fill in the blank 0c4032082034046_18

1. See Example 2.2

Question Content Area

2. What if the ending inventory of direct materials decreased by $1,200? Indicate the affect that this would have on the items listed below:

Direction of change Amount
Direct materials used decreaseincreaseno changeincrease by $fill in the blank 899527057fd0f9e_2
Total manufacturing costs decreaseincreaseno changeincrease by $fill in the blank 899527057fd0f9e_4
Cost of goods manufactured decreaseincreaseno changeincrease by $fill in the blank 899527057fd0f9e_6

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students