Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 2, Problem 2.38P
Cost of goods manufactured, income statement, manufacturing company. Consider the following account balances (in thousands) for the Carolina Corporation:
| Carolina Corporation | Beginning of 2017 | End of 2017 |
| Direct materials inventory | 124,000 | 73,000 |
| Work-in-process inventory | 173,000 | 145,000 |
| Finished-goods inventory | 240,000 | 206,000 |
| Purchases of direct materials | 262,000 | |
| Direct manufacturing labor | 217,000 | |
| Indirect manufacturing labor | 97,000 | |
| Plant insurance | 9,000 | |
| Depreciation—plant, building, and equipment | 45,000 | |
| Plant utilities | 26,000 | |
| Repairs and maintenance—plant | 12,000 | |
| Equipment leasing costs | 65,000 | |
| Marketing, distribution, and customer-service costs | 125,000 | |
| General and administrative costs | 71,000 |
- 1. Prepare a schedule for the cost of goods manufactured for 2017.
Required
- 2. Revenues (in thousands) for 2017 were $1:300,000. Prepare the income statement for 2017.
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Students have asked these similar questions
Cost of goods manufactured, income statement, manufacturing company. Consider the following
account balances (in thousands) for the Carolina Corporation:
Beginning of
2017
End of
Carolina Corporation
Direct materials inventory
2017
73,000
124,000
Work-in-process inventory
Finished-goods inventory
Purchases of direct materials
173,000
145,000
240,000
206,000
262,000
Direct manufacturing labor
Indirect manufacturing labor
Plant insurance
217,000
97,000
9,000
45,000
Depreciation-plant, building, and equipment
Plant utilities
Repairs and maintenance-plant
Equipment leasing costs
Marketing, distribution, and customer-service costs
26,000
12,000
65,000
125,000
General and administrative costs
71,000
1. Prepare a schedule for the cost of goods manufactured for 2017.
2. Revenues (in thousands) for 2017 were $1,300,000. Prepare the income statement for 2017.
Cost of goods manufactured, income statement, manufacturing company. Consider the following
account balances (in thousands) for the Peterson Company:
Beginning of
2017
End of
2017
Peterson Company
Direct materials inventory
Work-in-process inventory
Finished-goods inventory
Purchases of direct materials
23,000
21,000
26,000
25,000
13,000
20,000
74,000
Direct manufacturing labor
Indirect manufacturing labor
Plant insurance
22,000
17,000
7,000
11,000
Depreciation-plant, building, and equipment
Repairs and maintenance-plant
Marketing, distribution, and customer-service costs
General and administrative costs
3,000
91,000
24,000
1. Prepare a schedule for the cost of goods manufactured for 2017.
2. Revenues for 2017 were $310 million. Prepare the income statement for 2017.
Following are the account balances for the DC Company in 2018:
Ending of 2018
27,000
Beginning of 2018
Direct materials inventory
26,500
28,400
Work-in-process inventory
Finished-goods inventory
30,500
22,100
79,000
16,500
Purchases of direct materials
24,500
Direct manufacturing labor
Indirect manufacturing labor
18,600
7,900
11,800
Plant insurance
Depreciation-plant, building, and equipment
Repairs and maintenance-plant
Marketing, distribution, and customer-service costs
General and administrative costs
3,500
87,900
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 2 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 2 - Define cost object and give three examples.Ch. 2 - Define direct costs and indirect costs.Ch. 2 - Prob. 2.3QCh. 2 - Name three factors that will affect the...Ch. 2 - Define variable cost and fixed cost. Give an...Ch. 2 - What is a cost driver? Give one example.Ch. 2 - What is the relevant range? What role does the...Ch. 2 - Explain why unit costs must often be interpreted...Ch. 2 - Prob. 2.9QCh. 2 - What are three different types of inventory that...
Ch. 2 - Distinguish between inventoriable costs and period...Ch. 2 - Define the following: direct material costs,...Ch. 2 - Describe the overtime-premium and idle-time...Ch. 2 - Define product cost. Describe three different...Ch. 2 - What are three common features of cost accounting...Ch. 2 - Prob. 2.16MCQCh. 2 - Comprehensive Care Nursing Home is required by...Ch. 2 - Frisco Corporation is analyzing its fixed and...Ch. 2 - Year 1 financial data for the ABC Company is as...Ch. 2 - The following information was extracted from the...Ch. 2 - Computing and interpreting manufacturing unit...Ch. 2 - Direct, indirect, fixed, and variable costs....Ch. 2 - Classification of costs, service sector. Market...Ch. 2 - Classification of costs, merchandising sector....Ch. 2 - Classification of costs, manufacturing sector. The...Ch. 2 - Variable costs, fixed costs, total costs. Bridget...Ch. 2 - Variable and Fixed Costs. Consolidated Motors...Ch. 2 - Variable costs, fixed costs, relevant range. Gummy...Ch. 2 - Prob. 2.29ECh. 2 - Cost drivers and functions. The representative...Ch. 2 - Total costs and unit costs, service setting....Ch. 2 - Total and unit cost, decision making. Gayles...Ch. 2 - Inventoriable costs versus period costs. Each of...Ch. 2 - Computing cost of goods purchased and cost of...Ch. 2 - Cost of goods purchased, cost of goods sold, and...Ch. 2 - Flow of Inventoriable Costs. Renkas Heaters...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Interpretation of statements (continuation of...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Terminology, interpretation of statements...Ch. 2 - Labor cost, overtime, and idle time. David...Ch. 2 - Missing records, computing inventory costs. Ron...Ch. 2 - Comprehensive problem on unit costs, product...Ch. 2 - Prob. 2.46PCh. 2 - Cost classification; ethics. Paul Howard, the new...Ch. 2 - Prob. 2.48P
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