1. Thornton Foods bakes and sells 2,000 dozen muffins each weekto food service operations. Among the costs are bakers’ salaries,$24,000; production management salaries, $16,000; productionequipment operating costs, $32,000; and flour and ingredient costs,$15,000. Using this information, compute: (a) prime costs and (b)conversion costs.
2. Calculate Cost of Goods Sold for the following twocompanies:
LEWIS, INC.
MERCER CO.
Beginning Inventory:
Merchandise
$250,000
Finished Goods
$550,000
Cost of Goods Purchased
460,000
Cost of Goods Manufactured
688,000
Ending Inventory:
Merchandise
128,000
Finished Goods
350,000
3. Information for Maxim Manufacturing is presented below.Compute both the cost of goods manufactured and the cost of goodssold for Maxim Manufacturing.
Beginning raw materials inventory
$36,800
Beginning work in process inventory
21,200
Direct labor
81,000
Beginning finished goods inventory
64,000
Total factory overhead
126,000
Raw materials purchased
21,500
Ending raw materials inventory
40,000
Ending work in process inventory
20,000
Ending finished goods inventory
46,000
4. Information for Underwood Industries is presented below.Compute the cost of goods manufactured.
Beginning
Ending
Raw materials inventory
$26,800
30,100
Work in process inventory
41,200
39,000
Finished goods inventory
54,000
53,500
Raw materials purchased
93,500
Direct labor
61,000
Total factory overhead
117,300
5. Use the following information to prepare the schedule of costof goods manufactured for Graffstone Company for the month endedJune 30.
Work in Process inventory, May 31
$12,600
Work in Process inventory, June 30
16,500
Direct materials used during June
21,000
Direct labor used during June
31,000
Factory overhead:
Indirect material
6,400
Indirect labor
9,200
Factory rent
12,000
Factory depreciation
15,000
Factory utilities
18,400
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