Posted: July 9th, 2016

Calculate the cost of goods manufactured for the month and show work calculation?

1. Does the proposed material cost appear reasonable?
2. Whose position on Material Overhead appears reasonable?
3. Is the cost of preparing the request for equitable adjustment allowable?
4. Is the cost of preparing the claim allowable?
5. Is the proposed G & A expense reasonable?
6. How should the profit rate be determined?
7. If the contractor is to be paid interest, what should be the first day for interest calculation? Assume that the claim was submitted after Oct. 29, 1995)Kepler’s Fudge Factory had the following information available for the month of September:

Beginning Ending
Raw materials inventory $41,000 $21,000
Work in process inventory $26,000 $36,000
Finished-goods inventory $31,000 $21,000
Raw material purchased $98,000
Direct labor (2,000 hrs. @9) 18,000
Overhead 51,000

Required:

Calculate the cost of goods manufactured for the month and show work calculation