FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:3. CONCEPTUAL CONNECTION Suppose 200,000 EERES WEIC pro
sold) but that the company had a beginning finished goods inventory of 10,000 tents
produced in the prior year at $40 per unit. The company follows a first-in, first-out policy
for its inventory (meaning that the units produced first are sold first for purposes of cost
flow). What effect does this have on the income statement? Show the new statement.
Problem 2-55 Cost of Goods Manufactured, Cost of Goods Sold
Hayward Company, a manufacturing firm, has supplied the following information from its ac-
counting records for the month of May:
Direct labor cost
$10,500
Material handling
$ 3,750
Purchases of raw materials
3,475
Materials inventory, May 1
Work-in-process inventory, May 1
Finished goods inventory, May 1
Materials inventory, May 31
Work-in-process inventory, May 31
Finished goods inventory, May 31
15,000
Supplies used
Factory insurance
Commissions paid
Factory supervision
Advertising
675
12,500
350
6,685
2,500
9,500
2,225
14,250
800
4,250
equired:
1. Prepare a statement of cost of goods manufactured.
E. Prepare a statement of cost of goods sold.
2-56 Cost Identifi
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- Chapter 17 Homework Item Date August 1 Bal., 4,800 units, 3/5 completed 31 Direct materials, 86,400 units 31 Direct labor 31 Factory overhead 31 Goods finished, 87,600 units 31 Bal., ? units, 3/5 completed Debit Credit Debit Line Item Description Inventory in process, August 1 Started and completed in August Transferred to finished goods in August Inventory in process, August 31 Total 155,520 44,480 25,024 a. Determine the number of units in work in process inventory at August 31. units 223,728 6,912 162,432 206,912 231,936 8,208 8,208 b. Determine the equivalent units of production for direct materials and conversion costs in August. If an amount is z Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For August Whole Units Credit Equivalent Units Equivalent Direct Materials Units Conversionarrow_forward%24 %24 %24 3. 3oration haS the following Information for the month of March. Cost of materials used in production $19,369 Direct labor 26,541 Factory overhead 37,168 Work in process inventory, March 1 22,586 Work in process inventory, March 31 19,023 Finished goods inventory, March 1 23,026 Finished goods inventory, March 31 27,299 a. Determine the cost of goods manufactured. b. Determine the cost of goods sold. earch al 43°F 2) 114arrow_forwardThe following information is available for Blossom Manufacturing Company April 1 April 30 Raw materials inventory $10,200 $14.800 Work in process inventory 5,800 4,000 Materials purchased in April 590.300 Direct labour in April 63,000 Manufacturing overhead in April 184,000 Prepare the east of goods manufactured schedule for the month of April BLOSSOM MANUFACTURING COMPANY Cost of Goods Manufactured Schedule For the Month Ended April 30arrow_forward
- COST OF GOODS MANUFACTURED AND SOLD STATEMENTS AND NET INCOME OR LOSS PROBLEM 2-5 The Stiff Shirt Company has just completed its third year of operation. Sales for the year were $1,300,000, and inventories were as follows: DECEMBER 31 JANUARY 1 Raw materials inventory Work-in-process inventory Finished goods Inventory -0- $100,000 64,000 -0- $95,000 76,000 Costs for the period were as follows: Direct materials... $365,000 Direct labor Factory overhead 405,000 445,500 ..... Selling expenses were $26,000. General and administrative expenses were $82,000. Required: a Prepare the following statements: 1 Cost of goods manufactured 2 Cost of goods sold b Compute the net income or loss.arrow_forward26arrow_forwardaccountsarrow_forward
- On ff Company Company Materials inventory, December 1 $81,110 $109,500 Materials inventory, December 31 (a) 123,730 Materials purchased 206,020 (a) Cost of direct materials used in production 217,370 (b) Direct labor 305,780 246,380 Factory overhead 94,900 122,640 Total manufacturing costs incurred in December (b) 708,470 Total manufacturing costs 773,780 773,780 Work in process inventory, December 1 155,730 263,900 Work in process inventory, December 31 131,400 (c) Cost of goods manufactured (c) 701,900 Finished goods inventory, December 1 137,080 122,640 Finished goods inventory, December 31 143,560 (d) Sales 1,195,560 1,095,000 Cost of goods sold (d) 708,470 Gross profit (e) (e) Operating expenses 155,730 (f) Net income (f) 243,090arrow_forwarda3arrow_forwardHarrow_forward
- D Question 11 A company had a beginning work in process (WIP) inventory balance of $32.900. During the year, $55,100 of direct materials was placed into production Direct labor was $64,400, and Indirect labor was $19,900. Manufacturing overhead is allocated at 140% of direct labor costs. Actual manufacturing overhead was $86,500, and Cost of Goods Manufactured totaled $225,400. What is the ending work in process inventory balance? # $90.160 O $17.160. O $13.500 Ⓒ$187.4460arrow_forwardA-5arrow_forward
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