E5-4 (Concluded)

(2) Work in process, December 31:

Per
Unit
Direct materials......................... $2.40
Direct labor................................ .80
$3.20 × 2,000 units = $6,400
Factory overhead .....................32 machine hrs. @ $100 = 3,200
$9,600

(3) December cost of goods manufactured:

Materials used (direct) (requirement
(1))........................................... $ 90,000 Direct
labor...........................................................................................
30,000 Factory overhead (600 machine hours
@$100) ................................ 60,000
Total manufacturing
cost .................................................................... $180,000 Add
work in process, December 1:
Direct Material, $2.40 × 3,000 = $7,200
Direct Labor, $.80 × 3,000 = 2,400
Overhead, $100 × 48 machine hours = 4,800 14,400 $194,400
uirement (2)) .................... 9,600 $184,800

(4) Finished goods, December 31:

Direct
materials .................................................................................. $
5,000 Direct
labor .........................................................................................
3,000 Factory overhead (60 machine hours
@$100) ................................ 6,000 14,000

(5) December cost of goods sold:

Cost of goods manufactured (requirement
(3)) .............................. $184,800 Add finished goods, December
1 ..................................................... 12,000
Cost of goods available for
sale....................................................... $196,800 Less finished
goods, December 31 (requirement (4)) .................... 14,000
$182,800