As the Management Accountant for Bynami Enterprises, Inc March 31 Inventories Were as Follows: Materials, $540,200; Work in Been

question 80

Essay

As the management accountant for Bynami Enterprises, Inc., you have been asked to prepare a statement of cost of goods manufactured at the end of the first quarter. Account balances at that time were as follows:
$\begin{array}{|lr|}\hline \text { Materials inventory, January 1, 20xx } & \$ 510,500 \\\text { Work in process inventory, January 1, 20xx } & 697,300 \\\text { Finished goods inventory, January 1, 20xx } & 701,200 \\\text { Direct materials purchased during the quarter } & 1,105,400 \\\text { Direct labor costs } & 154,800 \\\text { Depreciation expense, plant and equipment } & 16,200 \\\text { Plant supervisors' salaries } & 50,600 \\\text { Insurance expense, plant and equipment } & 1,100 \\\text { Utilities expense, plant } & 4,000 \\\text { Indirect labor costs } & 16,800 \\\text { Manufacturing supplies expense } & 3,400 \\\text { Small tools expense } & 1,500 \\\hline\end{array}$ March 31 inventories were as follows: materials, $540,200; work in process, $795,400; and finished goods, $604,100. Prepare the statement of cost of goods manufactured for the first quarter of 20xx.

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Definitions:

Inventory Turnover Ratio

A measure of how quickly a company sells its inventory, indicating the efficiency of inventory management.

Receivable Turnover Ratio

A financial metric that measures how efficiently a company collects cash from its credit sales by calculating the number of times average receivables are collected during a period.

Average Days

Average days, often related to accounts receivable and payable, refers to the average number of days it takes a company to collect payments from customers or the time it takes to pay suppliers.