acct 301 week 4

Problem 1

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

Raw materials available for use $                       -  

Less: Ending raw materials inventory

Cost of direct raw materials used $                       -  

Direct labor

Manufacturing overhead

Total manufacturing costs $                       -  

Plus: Beginning work-in-process inventory

Total work in process $                       -  

Less: Ending work-in-process inventory

Cost of goods manufactured $                       -  

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?

(25 points)

Break-even point in unitsFixed Costs

Contribution margin per unit

Break-even point in dollarsBreak-even point in units * selling price