# (Solved Homework): The controller at Lawrence Components asks for your help in sorting out some cost information….

The controller at Lawrence Components asks for your help in sorting out some cost information. She is called to a meeting, but hands you the following information for April:

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 Prime costs, April \$ 149,000 Total manufacturing costs, April 271,000 Cost of goods manufactured, April 262,000 Cost of goods sold, April 220,000 Direct material inventory, April 30 15,700 Work-in-process inventory, April 1 9,200 Finished goods inventory, April 30 77,000 Direct materials purchased, April 83,000 Direct labor costs, April 58,000

Required:

a. Compute the direct material used for the month of April.

b. Compute the direct material inventory as of April 1.

c. Compute the conversion cost for the month of April.

d. Compute the work-in-process inventory as of April 30.

e. Compute the manufacturing overhead for the month of April.

f. Compute the finished goods inventory as of April 1.

 a Direct material used = Prime costs, April-Direct labor costs, April = 149000-58000= 91000 b Direct material inventory as of April 1 = 91000-83000+15700= 23700 c Conversion cost = 271000-91000= 180000 d Work-in-process inventory as of April 30 = 9200+271000-262000= 18200 e Manufacturing overhead = 180000-58000= 122000 f Finished goods inventory as of April 1 = 220000+77000-262000= 35000

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