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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 15
COST OF GOODS MANUFACTURED
Refer to Cornerstone Exercise 2-1. For next year, Sodowsky predicts that 150,000 units will be produced, with the following total costs:
Next year, Sodowsky expects to purchase $292,400 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows:
Required:
1. Prepare a statement of cost of goods manufactured in good form.
2. What if the ending inventory of direct materials increased by $2,000? Which line items on the statement of cost of goods manufactured would be affected and in what direction (increase or decrease)?
Refer to Cornerstone Exercise 2-1. For next year, Sodowsky predicts that 150,000 units will be produced, with the following total costs:
Next year, Sodowsky expects to purchase $292,400 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows:
Required:
1. Prepare a statement of cost of goods manufactured in good form.
2. What if the ending inventory of direct materials increased by $2,000? Which line items on the statement of cost of goods manufactured would be affected and in what direction (increase or decrease)?
Explanation
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1.
Prepare a statement of cost of goods...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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