acct2

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Problem 1

Problem 1

Raw materials available for use

Cost of direct raw materials used $ – 0
Manufacturing overhead
Total manufacturing costs $ – 0

$ – 0

Cost of goods manufactured $ – 0

Required: Use the following information to complete the below schedule of cost of goods manufactured.
	(25 points)
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
Schedule of Cost of Goods Manufactured
Beginning inventory, raw materials
Plus: Purchases of raw materials
				$ – 0
Less: Ending raw materials inventory
Direct labor
Plus: Beginning work-in-process inventory
Total work in process
Less: Ending work-in-process inventory

Problem 2

Problem 2

(25 points)

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?
Break-even point in units	Fixed Costs
Contribution margin per unit
Break-even point in dollars	Break-even point in units * selling price