Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 6GAP
To determine
Concept introduction:
Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.
Manufacturing
To calculate:
The missing Figure in the table.
Expert Solution & Answer
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An analysis of the accounts of Flint Company reveals the following manufacturing cost data for the month ended June 30, 2022.
Inventory
Beginning
Ending
Raw materials
$11,000
$16,180
Work in process
5,900
8,450
Finished goods
11,000
10,200
Costs incurred: raw materials purchases $64,100, direct labor $54,700, manufacturing overhead $25,040. The specific overhead costs
were: indirect labor $6,300, factory insurance $5,100, machinery depreciation $5,100, machinery repairs $2,390, factory utilities
$4,380, and miscellaneous factory costs $1,770. Assume that all raw materials used were direct materials.
(a)
Prepare the cost of goods manufactured schedule for the month ended June 30, 2022.
SUPI
The following information was obtained from the records of Martinez Corporation during 2018.
1. Manufacturing overhead was applied at a rate of 175 percent of direct labor dollars.
2. Beginning value of inventory follows:
a. Beginning Work in Process Inventory, $32,000.
b. Beginning Finished Goods Inventory, $15,000.
3. During the period, Work in Process Inventory decreased by 25 percent and Finished Goods
Inventory increased by 30 percent.
4. Actual manufacturing overhead costs were $105,000.
5. Sales were $750,000.
6. Adjusted Cost of Goods Sold was $325,000.
Required:
Use the preceding information to find the missing values in the following table:
Item
Direct Materials Used
Direct Labor
Manufacturing Overhead Applied
Current Manufacturing Costs
Plus: Beginning Work in Process Inventory
Less: Ending Work in Process Inventory
Cost of Goods Manufactured
Plus: Beginning Finished Goods Inventory
Less: Ending Finished Goods Inventory
Unadjusted Cost of Goods Sold
Overhead Adjustment…
he following information is obtained from the company’s records for 2014:a. Total manufacturing costs, P8,000,000b. Cost of finished goods manufactured, P7,920,000c. Manufacturing overhead applied, P3,600,000d. Manufacturing overhead was applied to production at a rate of 200% of direct laborcostse. The peso amount of work in process inventory on January 1, 2014 was P320,000.What is the peso amount of work in process inventory on December 31, 2014?a. P400,000b. P800,000c. P500,000d. P320,000
Chapter 2 Solutions
Managerial Accounting
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