The Following Information Is Available for the Bower Corporation for Last

question 181

Essay

The following information is available for the Bower Corporation for last year:
∙ Raw materials inventory decreased $4,000 from the beginning of the year to the end of the year.
∙ Raw materials inventory on December 31 (end of year)was 50% of raw materials inventory on January 1 (beginning of year).
∙ Beginning work in process inventory was $145,000.
∙ Ending finished goods inventory was $65,000.
∙ Purchases of direct materials were $154,700.
∙ Manufacturing overhead was 50% of the cost of direct labor.
∙ Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $156,000 less than cost of goods sold.
Compute:
a)finished goods inventory on January 1 (beginning of year)
b)work in process inventory on December 31 (end of year)
c)direct labor incurred
d)manufacturing overhead incurred
e)direct materials used
f)raw materials inventory on January 1 (beginning of year)
g)raw materials inventory on December 31 (end of year)
Note to students: The solutions to this problem are not necessarily calculated in alphabetical order.

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Definitions:

Moral Justification

The process of providing a moral reason or rationale to support or defend an action or behavior.

Legal Justification

The basis under law that explains or defends why an action is considered legal or right.

Cost-benefit

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine the best option through the evaluation of costs and benefits.

Past Oriented

A perspective or approach that places emphasis on traditions, history, and values from the past in decision making and lifestyle.