The following account balances are from Woods Corporation accounting records for the year ended December 31, 2008. Required: 1. Determine the amount of Direct materials used in production 2. Determine the amount of factory overhead costs 3. Determine the prime cost & conversion costs 4. A schedule for factory/manufacturing overhead costs 5. A schedule of the Cost of goods manufactured, clearly showing total manufacturing cost and total manufacturing cost to account for 6. An Income Statement for Woods Corporation for the year ended December 31,2008 7. During the year Woods corporation produced 20,000 pieces of furniture. What was the unit product cost? 8. How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising business? Advertising expense $ 85,000 Amortization expense – Patents 16,000 Special Design Cost 10,000 Bad Debts expense 28,000 Depreciation expense – Office equipment 37,000 Depreciation expense – Factory Building 133,000 Depreciation expense – Factory equipment 78,000 Direct Labour 250,000 Factory insurance expired 62,000 Factory supervision 74,000 Factory supplies used 21,000 Utilities* 115,000 Finished goods inventory, Jan 1 2008 15,000 Finished goods inventory, Dec 31 2008 12,500 Work in process inventory, Jan 1 2008 8,000 Work in process inventory, Dec 31 2008 9,000 Indirect labour 26,000 Interest expense 25,000 Miscellaneous expense 55,000 Property taxes on factory equipment 14,000
The following account balances are from Woods Corporation accounting records for the year
ended December 31, 2008.
Required:
1. Determine the amount of Direct materials used in production
2. Determine the amount of
3. Determine the prime cost & conversion costs
4. A schedule for factory/manufacturing overhead costs
5. A schedule of the Cost of goods manufactured, clearly showing total manufacturing cost and
total manufacturing cost to account for
6. An Income Statement for Woods Corporation for the year ended December 31,2008
7. During the year Woods corporation produced 20,000 pieces of furniture. What was the unit
product cost?
8. How does the format of the income statement for a manufacturing concern differ from the
income statement of a merchandising business?
Advertising expense $ 85,000
Amortization expense – Patents 16,000
Special Design Cost 10,000
Depreciation expense – Office equipment 37,000
Depreciation expense – Factory Building 133,000
Depreciation expense – Factory equipment 78,000
Direct Labour 250,000
Factory insurance expired 62,000
Factory supervision 74,000
Factory supplies used 21,000
Utilities* 115,000
Finished goods inventory, Jan 1 2008 15,000
Finished goods inventory, Dec 31 2008 12,500
Work in process inventory, Jan 1 2008 8,000
Work in process inventory, Dec 31 2008 9,000
Indirect labour 26,000
Interest expense 25,000
Miscellaneous expense 55,000
Property taxes on factory equipment 14,000
Raw materials inventory, Jan 1 2008 60,000
Raw materials inventory, Dec 31 2008 78,000
Raw materials purchases 313,000
Repairs expense – factory equipment 31,000
Salaries expense 150,000
Sales 1,630,000
* Of the total utilities expense 60% relates to manufacturing and 40% relates to
Administrative costs.
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