Acct301 Schedule of Cost of Goods Manufactured and JZ (Problems 1 and 2) – w/ Solutions!!

Problem 1 

 

Required: Use the following information to complete the below schedule of cost of goods manufactured. 

 

Purchases of raw materials          $120,000.00 

Raw materials available for use     $148,000.00 

Cost of direct raw materials used   $124,000.00 

Manufacturing overhead                  $24,000.00 

Total manufacturing costs              $310,000.00 

Ending work-in-process inventory   $(46,000.00)

Cost of goods manufactured          $306,000.00

  

Problem 2 

 

Required: JZ is a musician who is considering whether to independently produce and sell a CD. JZ estimates fixed costs of $10,000 and variable costs of $4.00 per unit. The expected selling price is $12 per CD. What is JZ’s break-even point in units and dollars?