The Following Information Is Available for the Petree Corporation for Last

question 117

Essay

The following information is available for the Petree 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:

Careers

Long-term occupations or professions, often involving specialized training or education, and followed as one's lifework.

Hurricanes

Powerful tropical storms characterized by strong winds and heavy rain, usually forming over warm ocean waters.

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Price Rise

An increase in the cost of goods or services over a period.