Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 10, Problem 23P
Problem 1-21A Effect of product versus period costs on financial statements
Sinclair Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the
1. Acquired $68,000 cash by issuing common stock.
2. Paid $8,700 for the materials used to make its products, all of which were started and completed during the year.
3. Paid salaries of $4,500 to selling and administrative employees.
4. Paid wages of $10,000 to production workers.
5. Paid $9,600 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,600 estimated salvage value and a four-year useful life.
6. Paid $16,000 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,000 estimated salvage value and a five-year useful life.
7. Sold inventory to customers for $35,000 that had cost $14,000 to make.
Required
Explain how these events would affect the
*Record
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Transaction Analysis
Dixon Company is a manufacturer that completed numerous transactions during the month, some of which are shown below:
a. Raw materials purchased on account, $100,000.
b. Raw materials used in production, $78,000 direct materials, and $16,000 indirect materials.
c. Sales commissions paid in cash, $45,000.
d. Depreciation was recorded for the month. $60,000 (65% related to factory equipment, and the remainder related to selling and administrative equipment).
e. Sales for the month, $450,000 (70% cash sales and the remainder were sales on account).
f. Factory utilities paid in cash, $12,000.
g. Applied $138,000 of manufacturing overhead to production during the month.
h. Various jobs costing a total of $190,000 were completed during the month and transferred to Finished Goods.
i. Cash receipts from customers who had previously purchased on credit, $115,000.
j. Various completed jobs costing a total of $220,000 were sold to customers.
k. Cash paid to raw material…
. Problems Problem 1 ( Flow of an accounting for the manufacturing company ) The following events took place at the Barton Manufacturing Corporation for a . the current year : 1. Purchased P80,000 in direct materials . 2. Incurred labor costs as follows : Direct labor , P42,000 . b . Supervisory labor , P11,500 ( part of manufacturing overhead ) . 3. Purchased manufacturing equipment for P67,200 . 4. Other manufacturing overhead was P80,500 , excluding supervisory labor . 5. Transferred 70 percent of the materials purchased to work in process . 6. Completed work on 60 percent of the goods in process . Costs are equally across all work in process . 7. Sold 90 percent of the completed goods . assigned There were no beginning balances in the inventory accounts . All costs incurred were debited to the appropriate account and credited to accounts payable . Required : 1. Prepare journal entries to reflect these events . 2. Prepare T - accounts to show these events . 3. Prepare a cost of…
Question 1.2
Following are the account balances for the DC Company in 2018:
Beginning of 2018
26,500
Ending of 2018
Direct materials inventory
Work-in-process inventory
Finished-goods inventory
27,000
28,400
22,100
79,000
30,500
16,500
Purchases of direct materials
Direct manufacturing labor
Indirect manufacturing labor
24,500
18,600
Plant insurance
7,900
Depreciation-plant, building, and equipment
Repairs and maintenance-plant
Marketing, distribution, and customer-service costs
11,800
3,500
87,900
General and administrative costs
26,500
Required:
1. Prepare a schedule for the cost of goods manufactured for 2018.
2. Revenues for 2018 was $425,000. Prepare the income statement for 2018.
Chapter 10 Solutions
Survey Of Accounting
Ch. 10 - 1. What are some differences between financial and...Ch. 10 - 2. What does the value-added principle mean as it...Ch. 10 - 4. How does product costing used in financial...Ch. 10 - 5. What does the statement costs can be assets or...Ch. 10 - 6. Why are the salaries of production workers...Ch. 10 - 7. How do product costs affect the financial...Ch. 10 - 8. What is an indirect cost? Provide examples of...Ch. 10 - 9. How does a product cost differ from a selling,...Ch. 10 - 10. Why is cost classification important to...Ch. 10 - 11. What is cost allocation? Give an example of a...
Ch. 10 - 13. What are some of the common ethical conflicts...Ch. 10 - 14. What costs should be considered in determining...Ch. 10 - 15. What is a just-in-time (JIT) inventory system?...Ch. 10 - Prob. 14QCh. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - Prob. 19QCh. 10 - Prob. 1ECh. 10 - Exercise 1-2A Identifying product versus selling,...Ch. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Exercise 1-6A Identifying product versus SGA costs...Ch. 10 - LO 1-3 Exercise 1-7A Recording product versus SGA...Ch. 10 - Prob. 8ECh. 10 - LO 1-4 Exercise 1-9A Upstream, midstream, and...Ch. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Cost of goods manufactured and sold The following...Ch. 10 - Prob. 15ECh. 10 - Exercise 1-14A Using JIT to minimize waste and...Ch. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Problem 1-19A Characteristics of financial versus...Ch. 10 - Prob. 22PCh. 10 - Problem 1-21A Effect of product versus period...Ch. 10 - Problem 1-22A Product versus SGA costs The...Ch. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 1ATCCh. 10 - Prob. 2ATCCh. 10 - Prob. 3ATCCh. 10 - Prob. 4ATCCh. 10 - Ethical Dilemma Product cost versus selling and...
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- Transaction Analysis Adams Company is a manufacturer that completed numerous transactions during the month, some of which are shown below: a. Manufacturing overhead costs incurred on account, $80,000. b. Depreciation was recorded for the month, $35,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment). c. Prepaid insurance expired during the month, $2,500 (75% related to production, and 25% related to selling and administration). d. Applied $115,000 of manufacturing overhead to production during the month. e. Closed $5,125 of overapplied overhead to cost of goods sold. Required: The table shown below includes a subset of Adams Company’s balance sheet accounts. Record each of the above transactions using the accounts that are given. If a transaction increases an account balance, then record the amount as a positive number. If it decreases an account balance, then record the amount in parentheses.arrow_forwardIII Froblems Problem 1 (Flow of an accounting for the manufacturing company) The following events took place at the Barton Manufacturing Corporation for the current year: 1. Purchased P80,000 in direct materials. 2 Incurred labor costs as followS a Direct labor, P42,000. b. Supervisory labor, PI1,500 (part of manufacturing overhead). 3. Purchased manufacturing equipment for P67,200. 4. Other manufacturing overhead was P80,500, excluding supervisory labor. 5. Transferred 70 percent of the materials purchased to work in process. 6. Completed work on 60 percent of the goods in process. Costs are assigned equally across all work in process. 7. Sold 90 percent of the completed goods. There were no beginning balances in the inventory accounts. All costs incurred were debited to the appropriate account and credited to accounts payable. Required: 1. Prepare jourmal entries to reflect these events. 2. Prepare T-accounts to show these events. 3. Prepare a cost of goods sold statement from the…arrow_forwardFinancial accountingarrow_forward
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