Concept introduction:
Cost of goods manufactured and sold statement represents the
To calculate:
The missing values.
Answer to Problem 19E
Particulars | $ (case 1) | $ (Case 2) | $ (Case 3) | $ (Case 4) |
Beginning Raw Materials | 7,000 | (e) 9,000 | 16,000 | 55,000 |
Raw material purchased | 63,000 | 24,500 | 33,312 | (o) 140,000 |
Indirect material issued | 1,400 | 2,000 | 1,200 | 1,000 |
Ending raw material | 2,800 | 4,500 | (i) 21,136 | 46,750 |
Direct material used | (a) 65,800 | 27,000 | 26,976 | (n) 147,250 |
Direct labor | 40,600 | (f) 43,500 | (j) 22,480 | 61,625 |
Manufacturing |
72,800 | 80,700 | 24,864 | 270,865 |
Total current manufacturing costs | (b) 179,200 | 151,200 | 74,320 | (m) 479,740 |
Beginning work in process | 57,400 | 65,200 | (k) 30,060 | 51,260 |
Ending work in process | (c) 42,000 | (g) 56,800 | 33,000 | 118,050 |
Cost of goods manufactured | 194,600 | 159,600 | 71,380 | 412,950 |
Beginning finished goods | 100,800 | (h) 42,600 | 41,520 | (p) 205,350 |
Ending finished goods | 112,000 | 60,200 | (l) 22,200 | 198,600 |
Cost of goods sold | (d) 183,400 | 142,000 | 90,700 | 419,700 |
Explanation of Solution
(a) Calculation of ‘Direct materials used’:
Particulars | $ (Case 1) |
Beginning raw materials | 7,000 |
(+) Raw materials purchased | 63,000 |
(-) Indirect materials issued | (1,400) |
(-) Ending raw materials | (2,800) |
Direct materials used | 65,800 |
(b) Calculation of ‘Total current manufacturing costs’
Particulars | $ (Case 1) |
Direct materials used | 65,800 |
(+) Direct Labor | 40,600 |
(+) Manufacturing overhead applied | 72,800 |
Total current manufacturing costs | 179,200 |
(c) Calculation of ‘Ending work in processes
Particulars | $ (Case 1) |
Total current manufacturing costs | 179,200 |
(+) Beginning work in process | 57,400 |
(-) Ending work in process | (42,000) |
Cost of goods manufactured | 194,600 |
(d) Calculation of ‘Cost of goods sold’
Particulars | $ (Case 1) |
Cost of goods manufactured | 194,600 |
(+) Beginning finished goods | 100,800 |
(-) Ending finished goods | (112,000) |
Cost of goods sold | 183,400 |
(e) Calculation of ‘Beginning raw materials’
Particulars | $ (Case 2) |
Beginning raw materials | 9,000 |
(+) Raw materials purchased | 24,500 |
(-) Indirect materials issued | (2,000) |
(-) Ending raw materials | (4,500) |
Direct materials used | 27,000 |
(f) Calculation of ‘Direct labor’
Particulars | $ (Case 2) |
Direct materials used | 27,000 |
(+) Direct Labor | 43,500 |
(+) Manufacturing overhead applied | 80,700 |
Total current manufacturing costs | 151,200 |
(g) Calculation of ‘Ending work in process’
Particulars | $ (Case 2) |
Total current manufacturing costs | 151,200 |
(+) Beginning work in process | 65,200 |
(-) Ending work in process | (56,800) |
Cost of goods manufactured | 159,600 |
(h) Calculation of ‘Beginning finished goods’
Particulars | $ (Case 2) |
Cost of goods manufactured | 159,600 |
(+) Beginning finished goods | 42,600 |
(-) Ending finished goods | (60,200) |
Cost of goods sold | 142,000 |
(i) Calculation of ‘Ending raw materials’
Particulars | $ (Case 3) |
Beginning raw materials | 16,000 |
(+) Raw materials purchased | 33,312 |
(-) Indirect materials issued | (1,200) |
(-) Ending raw materials | (21,136) |
Direct materials used | 26,976 |
(j) Calculation of ‘Direct Labor’
Particulars | $ (Case 3) |
Direct materials used | 26,976 |
(+) Direct Labor | 22,480 |
(+) Manufacturing overhead applied | 24,864 |
Total current manufacturing costs | 74,320 |
(k) Calculation of ‘Beginning work in process’
Particulars | $ (Case 3) |
Total current manufacturing costs | 74,320 |
(+) Beginning work in process | 30,060 |
(-) Ending work in process | (33,000) |
Cost of goods manufactured | 71,380 |
(l) Calculation of ‘Ending finished goods’
Particulars | $ (Case 2) |
Cost of goods manufactured | 71,380 |
(+) Beginning finished goods | 41,520 |
(-) Ending finished goods | (22,200) |
Cost of goods sold | 90,700 |
(m) Calculation of ‘Total current manufacturing costs’
Particulars | $ (Case 4) |
Total current manufacturing costs | 479,740 |
(+) Beginning work in process | 51,260 |
(-) Ending work in process | (118,050) |
Cost of goods manufactured | 412,950 |
(n) Calculation of ‘Direct material used’
Particulars | $ (Case 4) |
Direct materials used | 147,250 |
(+) Direct Labor | 61,625 |
(+) Manufacturing overhead applied | 270,865 |
Total current manufacturing costs | 479,740 |
(o) Calculation of ‘Raw material purchases’
Particulars | $ (Case 4) |
Beginning raw materials | 55,000 |
(+) Raw materials purchased | 140,000 |
(-) Indirect materials issued | (1,000) |
(-) Ending raw materials | (46,750) |
Direct materials used | 147,250 |
(p) Calculation of ‘Beginning finished goods’
Particulars | $ (Case 2) |
Cost of goods manufactured | 412,950 |
(+) Beginning finished goods | 205,350 |
(-) Ending finished goods | (198,600) |
Cost of goods sold | 419,700 |
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Chapter 2 Solutions
MANAGERIAL ACCOUNTING >C<
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