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15 February, 13:25

Roland Corporation budgeted April sales at 2,500 units. The beginning finished goods inventory consisted of 2,000 units, however, Roland desired to have 2,500 finished units on hand by the end of April. Direct materials inventory consisted of 800 beginning units and Roland desired an ending balance of 1,400 units. Each finished unit required 2 units of direct material and 1 hour of direct labor. Direct materials cost $3.00 per unit, direct labor cost $11.00 per hour, and factory overhead is applied at $7.00 per direct labor hour. Roland has no work in process at the beginning or end of the month. How much is the anticipated cost of goods manufactured for April

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  1. 15 February, 16:15
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    Anticipated cost of goods manufactured for April = $ 93,000 for 3000 units

    Explanation:

    Roland Corporation

    Budgeted April Sales 2,500 units.

    The Beginning finished goods inventory 2,000 units,

    Cost of Goods Available for Manufacture 3000

    Finished units on hand by the end of April 2,500

    Cost of goods manufactured for April 2,500

    Direct materials inventory consisted of 800 beginning units

    Direct Materials Purchased 6600

    Ending balance 1,400 units.

    Direct Material used 6000 units

    Direct materials cost $3.00 per unit, * 3000*2 = $ 18,000

    Direct labor cost $11.00 per hour, * 3000 = $ 33000

    Factory overhead is applied at $7.00 per direct labor hour * = $ 42,000

    Total Manufacturing Costs $ 93,000
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