Computing total manufacturing costs


Davis Company manufactures wood file cabinets. The following information is available for June 2008:

                                       Beginning    Ending
Raw Material Inventory        $ 6,000    $ 7,500
Work in Process Inventory    17,300    11,700
Finished Goods Inventory      21,000    16,300

1) Direct labor is $9.60 per hour and overhead for the month was $9,600. Compute total manufacturing costs for June, if there were 1,500 direct labor hours and $21,000 of raw material was purchased.

2) Direct labor is paid $9.60 per hour and overhead for the month was $9,600. What are prime costs and conversion costs, respectively if there were 1,500 direct labor hours and $21,000 of raw material was purchased?

3) Direct labor is paid $9.60 per hour and overhead for the month was $9,600. If there were 1,500 direct labor hours and $21,000 of raw material purchased, how much is Cost of Goods Manufactured?

4) Direct labor is paid $9.60 per hour and overhead for the month was $9,600. If there were 1,500 direct labor hours and $21,000 of raw material purchased, how much is Cost of Goods Sold?

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Accounting Basics: Computing total manufacturing costs
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