Question

The balances in the perpetual inventory accounts of Valleyview Manufacturing Corporation at the beginning and end of the current year are as follows: Total dollar amounts debited and credited during the year to the accounts used in recording manufacturing activities are as follows: Instructions: a. Using these data, state or compute for the year the following amounts: 1. Direct materials purchased. 2. Direct materials used. 3. Payments of direct labor payrolls. 4. Direct labor cost assigned to production. 5. The overhead assigned to production stated as a percentage of direct labor costs. 6. Total manufacturing costs charged to the Work in Process Inventory account during the year. 7. The cost of finished goods manufactured. 8. The cost of goods sold. 9. The total amount to be classified as inventory in the year-end balance sheet. b. Prepare a schedule of the cost of finished goods manufactured.

          The balances in the perpetual inventory accounts of Valleyview Manufacturing Corporation at the beginning and end of the current year are as follows:

Total dollar amounts debited and credited during the year to the accounts used in recording manufacturing activities are as follows:

Instructions:
a. Using these data, state or compute for the year the following amounts:
1. Direct materials purchased.
2. Direct materials used.
3. Payments of direct labor payrolls.
4. Direct labor cost assigned to production.
5. The overhead assigned to production stated as a percentage of direct labor costs.
6. Total manufacturing costs charged to the Work in Process Inventory account during the year.
7. The cost of finished goods manufactured.
8. The cost of goods sold.
9. The total amount to be classified as inventory in the year-end balance sheet.

b. Prepare a schedule of the cost of finished goods manufactured.

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Added by Tracy S.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

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Solved by Expert Manasvee Singh

04/28/2022

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The balances in the perpetual inventory accounts of Valleyview Manufacturing Corporation at the beginning and end of the current year are as follows: Total dollar amounts debited and credited during the year to the accounts used in recording manufacturing activities are as follows: Instructions: a. Using these data, state or compute for the year the following amounts: 1. Direct materials purchased. 2. Direct materials used. 3. Payments of direct labor payrolls. 4. Direct labor cost assigned to production. 5. The overhead assigned to production stated as a percentage of direct labor costs. 6. Total manufacturing costs charged to the Work in Process Inventory account during the year. 7. The cost of finished goods manufactured. 8. The cost of goods sold. 9. The total amount to be classified as inventory in the year-end balance sheet. b. Prepare a schedule of the cost of finished goods manufactured.

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Transcript

0:00 Hello everyone.

00:01 So there are nine parts for this question.

00:03 We'll start with part one.

00:05 That says using these data state or compute the following, compute for the year the following amounts.

00:14 First is direct materials purchased.

00:17 So purchase of direct material is equals to $225 ,000 from t account material inventory.

00:45 Next, part 2 says direct materials used.

00:52 So, cost of direct material used is equals to opening balance that is $25 ,000 plus purchase that is $225 ,000 minus ending balance that is $15 ,000.

01:32 That totals up to.

01:35 $235 ,000.

01:38 So cost of direct material used is $235 ,000.

01:44 Next is payments of direct labor payrolls.

01:53 So direct labor payroll paid during the year is equals to $200 ,000 from t account direct labor.

02:14 Now, moving to the fourth part that says direct labor cost assigned to production.

02:24 So, direct labor cost assigned to production is equals to $210 ,000.

02:51 This is from t -account work in process.

02:56 Now the fifth part says the overhead assigned to production.

03:01 Stated as a percentage of direct labor cost.

03:06 So it will be manufacturing cost charged as percentage of direct labor cost...

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