Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 13, Problem 13.4ME
Mini-Exercise 13.4
LO 7
Statement of cost of goods manufactured The following information is from ABC Company’s general ledger: Beginning and ending inventories, respectively, for raw materials were $8,000 and $10,000 and for work in process were $20,000 and $22,000. Raw material purchases and direct labor costs incurred were $36,000 each, and manufacturing overhead applied amounted to $20,000.
Required:
Prepare a statement of cost of goods manufactured for ABC Company.
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QUESTION 6
Your company currently produces a range of three products, D, E and F to which the following
details relate for Period 2.
Production (units)
Material cost per unit
Labour hours per unit
Machine hours per unit
D
1,500
RM 18
Set-up costs
Handling costs
Machining costs
Inspection costs
1
3
Labour costs are RM 8 per hour and production overheads are currently absorbed in the
conventional system by reference to machine hours. Total production overheads for Period 2
have been analysed as follows:
RM
327,250
187,000
140,250
280,500
935,000
E
2,500
RM 10
3
2
D
90
16
180
F
14,000
RM 20
2
6
(a) Calculate the cost per unit for each product using conventional methods.
The introduction of an ABC is being considered and to that end the following volume of
activities have been identified with the current output levels.
E
138
28
216
F
576
116
804
Number of set-ups
Number of material issues
Number of inspections
(b) Calculate the cost per unit for each product using the ABC approach.
(c)…
Requirement 2. Show how to compute cost of goods manufactured. Use the following amounts: direct materials used,
$19,000;
direct labor,
$6,000;
manufacturingoverhead,
$21,000;
beginning Work-in-Process Inventory,
$14,800;
and ending Work-in-Process Inventory,
$8,000.
Cost of Goods Manufactured
Direct Materials Used
Direct Labor
Manufacturing Overhead
Total Manufacturing Costs Incurred during Period
Total Manufacturing Costs to Account For
Cost of Goods Manufactured
Requirement 3. Using the results from Requirement 2, calculate the cost per unit for goods manufactured assuming
1,100
units were manufactured.
÷
=
Unit product cost
÷
=
Requirement 4. Beginning Finished Goods Inventory had
225
units that had a unit cost of
$45
each. Ending Finished Goods Inventory has
250
units left.…
Question # 1
Standard and the actual costs for direct materials and direct labor are given as under:
Standard costs
Direct materials 8,000 units at total direct material costs Rs. 40,000
Direct labor: 7,000 hours at Rs. 6 per hour
Actual costs
Direct materials 8,500 units at Rs. 4.5 per unit
Direct labor: 6,500 hours at Rs. 6.25 per hour
Required
c. Entries in general journal to record the above information
d. What do you realize whether the overall variation is in favorable or unfavorable?
Chapter 13 Solutions
Accounting: What the Numbers Mean
Ch. 13 - Prob. 13.1MECh. 13 - Mini-Exercise 13.2 LO 5, 6 Calculate predetermined...Ch. 13 - Mini-Exercise 13.3 LO 6 Underapplied overhead...Ch. 13 - Mini-Exercise 13.4 LO 7 Statement of cost of goods...Ch. 13 - Prob. 13.5MECh. 13 - Prob. 13.6MECh. 13 - Exercise 13.7 LO 2 Value chain classifications...Ch. 13 - Prob. 13.8ECh. 13 - Exercise 13.9 LO 3, 4 Cost classifications For...Ch. 13 - Exercise 13.10
LO 3, 4
Cost classifications For...
Ch. 13 - Exercise 13.11
LO 4
Cost classifications Aussie...Ch. 13 - Exercise 13.12
LO 4
Cost classifications College...Ch. 13 - Exercise 13.13
LO 5
Product costing—various issues...Ch. 13 - Exercise 13.14
LO 5
Product costing—manufacturing...Ch. 13 - Exercise 13.15
LO 5, 6
Manufacturing...Ch. 13 - Exercise 13.16 LO 5, 6 Manufacturing...Ch. 13 - Prob. 13.17ECh. 13 - Prob. 13.18ECh. 13 - Prob. 13.19ECh. 13 - Exercise 13.20
LO 8
Variable versus absorption...Ch. 13 - Problem 13.21
LO 9
Activity-based costing MedTech,...Ch. 13 - Prob. 13.22PCh. 13 - Prob. 13.23PCh. 13 - Prob. 13.24PCh. 13 - Prob. 13.25PCh. 13 - Prob. 13.26PCh. 13 - Prob. 13.27PCh. 13 - Prob. 13.28PCh. 13 - Case 13.29 LO 4, 5, 7 Cost of goods manufactured,...Ch. 13 - Prob. 13.30CCh. 13 - Prob. 13.31CCh. 13 - Prob. 13.32C
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