Product Cost Flows: MUST BUHS Fall 2020
Product Cost Flows: MUST BUHS Fall 2020
Product Cost Flows: MUST BUHS Fall 2020
Work
Raw Materials In Process
Work
Raw Materials In Process
Work
Raw Materials In Process
Work
Raw Materials In Process
Total
Wages
Total IM
Wages
Total DL IM
Wages
Total DL IM
Wages
IL IL
Total DL IM
Wages
IL IL
OFOH
FOHA
Cost of Goods Sold
Wages Payable Factory Overhead
Total DL IM FOHA
Wages
IL IL Based on
predetermined
OFOH overhead rate
FOHA
Cost of Goods Sold
Wages Payable Factory Overhead
Total DL IM FOHA
Wages
IL IL
OFOH
FOHA
Cost of Goods Sold
Wages Payable Factory Overhead SOLD
Total DL IM FOHA
Wages
IL IL
OFOH
FOHA
Cost of Goods Sold
Wages Payable Factory Overhead SOLD
Total DL IM FOHA
Wages
IL IL Based on
predetermined
OFOH overhead rate
Direct Materials:
Beginning materials inventory $ 10,000
Purchase of materials 25,000
Total materials available $ 35,000
Deduct: Ending materials inventory - 12,000
Indirect materials used - 3,000
Direct materials used $ 20,000
Direct labor 70,000
Factory overhead applied 10,500
Total manufacturing costs incurred $100,500
MUST BUHS Fall 2020
Schedule of Cost of Goods Manufactured and Sold
BOTTOM
Power
Failures
Continue
MUST BUHS Fall 2020
Numerical Example
Management at THD believes that indirect costs
are actually caused by the following five activities:
Estimated
Activity Costs
Machine setups 255,000 TL
Quality inspections 160,000 TL
Production orders 81,000 TL
Machine-hours worked 314,000 TL
Material receipts 90,000 TL
Total 900,000 TL