Halston Manufacturing Uses Actual Costing

question 87

Essay

Halston Manufacturing uses actual costing. The following events took place during the current year:
(1) Purchased $95,000 in direct materials.
(2) Incurred labor costs as follows: (a) direct, $56,000 and (b) indirect, $13,600.
(3) Other manufacturing overhead was $107,000, excluding indirect labor.
(4) Transferred 80% of the materials to the manufacturing assembly line.
(5) Completed 65% of the Work-in-Process during the year.
(6) Sold 85% of the completed goods.
(7) There were no beginning inventories.
Required:
(a) Determine the ending Direct Materials Inventory balance.
(b) Determine the ending Work-in-Process Inventory balance.
(c) Determine the ending Finished Goods Inventory balance.
(d) Determine the Cost of Goods Manufactured.

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Definitions:

Interconnected Stages

Phases or steps that are linked or related in such a way that changes in one stage affect the others.

Creative Process

A sequence of thoughts and actions that lead to the production of novel and useful ideas or outcomes.

Elimination

The process of removing or getting rid of something or someone.

Win-Lose Situation

A conflict resolution scenario where one party's gain is directly correlated with another party's loss, often leading to competitive or adversarial interactions.