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:

Total Dollar Amount

The complete sum of all monetary figures in question, without considering the breakdown of components that constitute this total.

Activity Changes

Refers to alterations in the volume or pace of operations or transactions within a business over a period.

Variable Costs

Costs that vary directly with the level of production or volume of output, such as raw materials and labor directly involved in manufacturing.

Activity Levels

A measure used in cost accounting to evaluate the relation between the cost of a particular activity and the level of activity executed.