Arturo Manufacturing Company Provided the Following Information for the Year

question 33

Essay

Arturo Manufacturing Company provided the following information for the year 2012:
$$\begin{array} { l r } \text { Beginning balance-work in process inventory } & \$ 12,000 \\\text { Ending balance-work in process inventory } & \$ 28,000 \\\text { Beginning balance-direct materials inventory } & \$ 42,000 \\\text { Ending balance-direct materials inventory } & \$ 30,000 \\\text { Purchases-direct materials } & \$ 180,000 \\\text { Direct labor } & \$ 235,000 \\\text { Indirect materials } & \$ 23,500 \\\text { Indirect labor } & \$ 9,500 \\\text { Depreciation on factory plant \& equipment } & \$ 12,000 \\\text { Plant utilities \& insurance } & \$ 135,000\end{array}$$
-Please prepare a statement of the cost of goods manufactured using the following format:
$$\begin{array} { | l | l | l | l | } \hline \text { COST OF GOODS MFGD } &\quad\quad\quad &\quad\quad\quad &\quad\quad\quad \\\hline \text { Beginning work in process } & & & \\ \hline \text { Direct materials used: } & & & \\\hline \text { Beginning direct materials inventory } & & & \\\hline \text { Purchases direct materials } & & & \\\hline \text { Available for use } & & & \\\hline \text { Ending direct materials inventory } & & & \\\hline \text { Direct materials used } & & & \\\hline \text { Direct labor } & & & \\\hline \text { Manufacturing overhead: } & & & \\\hline \text { Indirect materials } & & & \\\hline \text { Indirect labor } & & & \\\hline \text { Depreciation - plant \& equip. } & & & \\\hline \text { Plant utilities \& insurance } & & & \\\hline \text { Total manufacturing overhead } & & & \\\hline \text { Total mfg costs incurred } & & & \\\hline \text { Total mfg costs to account for } & & & \\\hline \text { Ending work in process } & & & \\\hline \text { Cost of goods manufactured } & & & \\\hline\end{array}$$

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Definitions:

Autonomous Consumption

The part of consumption that does not change with income levels, representing basic necessities one must purchase regardless of income.

Long-Run Aggregate Supply Curve

A graphical representation showing an economy's potential output when all prices, including wages, can fully adjust to changes in the economic environment.

Business Taxes

Taxes that are required to be paid by businesses based on their income, property, and sometimes their sales.

Agricultural Output

The total quantity of agricultural products produced and harvested in a given period.