Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 7E
The following data are taken from the general ledger and other records of Coral Park Production Co. on January 31, the end of the first month of operations in the current fiscal year:
- a. Prepare a statement of cost of goods manufactured.
- b. Prepare the cost of goods sold section of the income statement.
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The following data was taken from the general ledger and other records of Martinez Manufacturing Co. on July 31, the end of the first month of operations in the current fiscal year: Sales.........$50,000; Materials inventory (July 01)......15,000; Work in process inventory (July 01)..... 20,000; Finished goods inventory (July 01).......28,000; Materials purchased ...... 21,000; Direct labor.....12,500; Factory overhead (including $5,000 of indirect materials used and $2,500 of indirect labor cost).....11,500; Selling and Adminstrative expense.....8,000; Inventories on July 31: Materials.....16,000; Work in Process.....18,000; Finished good.....30,000 QUESTION: a) Prepare a statement of cost of goods manufactured b) determine the cost of goods sold for the month.
Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company
The following information is available for Aricanly Manufacturing Company for the month ending January 31:
Cost of goods manufactured
Selling expenses
Administrative expenses
Sales
Finished goods inventory, January 1
Finished goods inventory, January 31
a. For the month ended January 31, determine Aricanly's cost of goods sold.
Aricanly Manufacturing
Company
Cost of Goods Sold
January 31
b. For the month ended January 31, determine Aricanly's gross profit.
Aricanly Manufacturing
Company
Gross Profit
January 31
$277,220
92,600
48,960
589,840
66,650
60,750
c. For the month ended January 31, determine Aricanly's net income.
Aricanly Manufacturing Company
Net Income
January 31
Operating expenses:
Total operating expenses
The following cost and inventory data for the just completed year are taken from the
accounting records of Eccles Company:
Costs incurred:
Advertising expense.
Direct labor cost....
Purchases of raw materials.
Rent, factory building.
Indirect labor...
Sales commissions.
Utilities, factory....
Maintenance, factory equipment...
Supplies, factory.....
Depreciation, office equipment..
Depreciation, factory equipment.
Beginning of Year End of Year
Inventories:
Raw Materials $8,000 $10,000
Work in Process $5,000 $20,000
Finished Goods $70,000 $25,000
.$100,000
$90,000
$132,000
. $80,000
$56,300
. $35,000
.$9,000
... $24,000
$700
$8,000
.. $40,000
Required:
1. Prepare a schedule of cost of goods manufactured.
2. Prepare the cost of goods sold section of Eccles Company.
Chapter 1 Solutions
Principles of Cost Accounting
Ch. 1 - How does the cost accounting function assist in...Ch. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Prob. 5QCh. 1 - Prob. 6QCh. 1 - How is cost accounting information used by...Ch. 1 - Why is unit cost information important to...Ch. 1 - For a manufacturer, what does the planning process...Ch. 1 - How is effective control achieved in a...
Ch. 1 - Define responsibility accounting.Ch. 1 - What criteria must be met for a unit of activity...Ch. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - What actions should a CMA take when the...Ch. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - How is cost accounting related to: financial...Ch. 1 - How does the computation of cost of goods sold for...Ch. 1 - How would you describe the following accounts:...Ch. 1 - Prob. 22QCh. 1 - What is the difference between a perpetual...Ch. 1 - What are the basic elements of production cost?Ch. 1 - How would you define the following costs: direct...Ch. 1 - Why have companies such as Harley-Davidson stopped...Ch. 1 - Distinguish prime cost from conversion cost. Does...Ch. 1 - In what way does the accounting treatment of...Ch. 1 - How do cost of goods sold and cost of goods...Ch. 1 - How are nonfactory costs and costs that benefit...Ch. 1 - What is a mark-on percentage?Ch. 1 - Prob. 32QCh. 1 - When is process costing appropriate, and what...Ch. 1 - What are the advantages of accumulating costs by...Ch. 1 - What is a job cost sheet, and why is it useful?Ch. 1 - What are standard costs, and what is the purpose...Ch. 1 - If the factory operations and selling and...Ch. 1 - Study the performance report for Barbaras Bistro...Ch. 1 - Note that Barbaras Bistro in Figure 1-2 prepares...Ch. 1 - Cost of goods soldmerchandiser The following data...Ch. 1 - The following data were taken from the general...Ch. 1 - Prob. 5ECh. 1 - Explain in narrative form the flow of direct...Ch. 1 - The following data are taken from the general...Ch. 1 - The following data are taken from the general...Ch. 1 - The following inventory data relate to Edwards,...Ch. 1 - The following is a list of manufacturing costs...Ch. 1 - Leen Production Co. uses the job order cost system...Ch. 1 - Gerken Fabrication Inc. uses the job order cost...Ch. 1 - Cycle Specialists manufactures goods on a job...Ch. 1 - Prepare a performance report for the dining room...Ch. 1 - The following data were taken from the general...Ch. 1 - The following data were taken from the general...Ch. 1 - Statement of cost of goods manufactured; income...Ch. 1 - The adjusted trial balance for Appleton...Ch. 1 - The post-closing trial balance of Custer Products,...Ch. 1 - Selected account balances and transactions of...Ch. 1 - OReilly Manufacturing Co.s cost of goods sold for...Ch. 1 - Glasson Manufacturing Co. produces only one...Ch. 1 - Sultan, Inc. manufactures goods to special order...Ch. 1 - Spokane Production Co. obtained the following...Ch. 1 - Bangor Products Co. obtained the following...Ch. 1 - Potomac Automotive Co. manufactures engines that...Ch. 1 - Required Ethics Mary Branson is the Division...
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