Exercise 1:
The balances in the perpetual inventory accounts of Dahl Manufacturing Corporation at the beginning and end
of the current year are as follows:
Inventories OB
EB
DM
51,0 €
21,0 €
WIP
5,0 €
11,0 €
FG
40,0 €
53,0 €
The total dollar amounts debited and credited during the year to the accounts used in recording manufacturing
activities are as follows:
Activity
db
cr
DM
465,0 €
DL pay
197,0 €
202,0 €
MOH
454,5 €
454,5 €
WIP
FG
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. Total manufacturing costs charged to the Work in Process Inventory account during the year.
6. The cost of finished goods manufactured.
7. Cost of goods sold.
8. 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