Solution RESER

a. Raw materials inventory, beginning $ 8,000

Raw materials purchases 93,000
Raw materials available for use 101,000
Less: Raw materials inventory, ending 7,000
Direct materials used $ 94,000

b. Manufacturing overhead:
Factory rent $ 8,000
Factory utilities 7,000
Indirect materials 4,000
Indirect labor 6,000
Total manufacturing overhead $25,000

c. Reser Company
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2018
Work in processing, beginning $ 15,000
Direct materials
Raw materials inventory, beginning $ 8,000
Raw materials purchases 93,000
Raw materials available for use 101,000
Less: Raw materials inventory, ending 7,000
Direct materials used $94,000
Direct labor 42,000
Manufacturing overhead 25,000
Total manufacturing costs 161,000
Total cost of work in process 176,000
Less: Work in process, ending 13,000
Cost of goods manufactured $163,000

d. Reser Company
(Partial) Income Statement
For the Year Ended December 31, 2018
Finished goods inventory, January 1 $ 16,000
Cost of goods manufactured 163,000
Cost of goods available for sale 179,000
Finished goods inventory, December 31 10,000
Cost of goods sold $169,000