Problems Essays - Manufacturing, Management Accounting, Costs

Problems Essays - Manufacturing, Management Accounting, Costs Problems Problem 1 Required: Use the following information to complete the below schedule of cost of goods manufactured. (25 points) Purchases of raw materials$120,000.00 Raw materials available for use$148,000.00 Cost of direct raw materials used$124,000.00 Manufacturing overhead$24,000.00 Total manufacturing costs$310,000.00 Ending work-in-process inventory($46,000.00) Cost of goods manufactured$306,000.00 Schedule of Cost of Goods Manufactured Beginning inventory, raw materials$28,000.00 Plus: Purchases of raw materials$120,000.00 Raw materials available for use$148,000.00 Less: Ending raw materials inventory($24,000.00) Cost of direct raw materials used$124,000.00 Direct labor$162,000.00 Manufacturing overhead$24,000.00 Total manufacturing costs$310,000.00 Plus: Beginning work-in-process inventory$42,000.00 Total work in process$352,000.00 Less: Ending work-in-process inventory($46,000.00) Cost of goods manufactured$306,000.00 Problem 2 Required: JZ is a musician who is considering whether to independently produce and sell a CD. JZ estimates fixed costs of $10,000 and variable costs of $4.00 per unit. The expected selling price is $12 per CD. What is JZ's break-even point in units and dollars? (25 points) Break-even point in unitsFixed Costs10000/(12-4)1250 Contribution margin per unit Break-even point in dollarsBreak-even point in units * selling price1250 * 12$15,000.00