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