Answer to Question #227261 in Accounting for mafi

Question

1.selected data concerning the past year's operations of the awash mfg cor. are as follows

raw material beginning inventory 71000 end inventory 81000

work in process beginning inventory 80000 end inventory 30000

F/G beginning inventory 90000 end inventory 110000

Direct material used end inventory 326000

total mfg cost charged end inventory 686000

cost of goods av.for sale end inventory 826000

selling of admin exp end inventory 31500

instruction :determine

a.R.M purchased

b. cost of goods mfg

c.costs of goods sold

Answer 1

Solution:

a.). R.M purchased:

Raw materials used = Beginning raw materials inventory + Raw materials purchased – Ending raw materials inventory

326,000 = 71,000 + P – 81,000

P = 326,000 – 71,000 + 81000 = 336,000

Raw materials purchased = 336,000

 

b.). This is calculated as per the below table: