Fundamentals Of Cost Accounting (6th Edition)
6th Edition
ISBN: 9781259969478
Author: WILLIAM LANEN, Shannon Anderson, Michael Maher
Publisher: McGraw Hill Education
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Textbook Question
Chapter 7, Problem 54P
Finding Missing Data
A new computer virus (AcctBGone) destroyed most of the company records at BackupsRntUs. The computer experts at the company could recover only a few fragments of the company’s factory ledger for March as follows:
Further investigation and reconstruction from other sources yielded the following additional information:
- The controller remembers clearly that actual
manufacturing overhead costs are recorded at $18 per direct labor-hour. (The company assigns actual overhead to Work-in-Process Inventory.) - The production superintendent’s cost sheets showed only one job in Work-in-Process Inventory on March 31. Materials of $15,600 had been added to the job, and 300 direct labor-hours had been expended at $36 per hour.
- The Accounts Payable are for direct materials purchases only, according to the accounts payable clerk. He clearly remembers that the balance in the account was $36,000 on March 1. An analysis of canceled checks (kept in the treasurer’s office) shows that payments of $252,000 were made to suppliers during the month.
- The payroll ledger shows that 5,200 direct labor-hours were recorded for the month. The employment department has verified that there are no variations in pay rates among employees (this infuriated Steve Fung, who believed that his services were underpaid).
- Records maintained in the finished goods warehouse indicate that the finished goods inventory totaled $108,000 on March 1.
- The cost of goods manufactured in March was $564,000.
Required
Determine the following amounts:
- a. Work-in-process inventory, March 31.
- b. Direct materials purchased during March.
- c. Actual manufacturing overhead incurred during March.
- d. Cost of goods sold for March.
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The following information was taken from the accounting records of Elliott Manufacturing Corporation. Unfortunately, some of the data were destroyed by a computer malfunction.
Sales Revenue
$ 60,250
Finished Goods Inventory, Beginning
9,750
Finished Goods Inventory, Ending
6,600
Cost of Goods Sold
?
Gross Margin
26,950
Direct Materials Used
10,450
Selling and Administrative Expense
?
Operating Income
14,600
Work-in-Process Inventory, Beginning
?
Work-in-Process Inventory, Ending
5,450
Direct Labor Used
9,225
Factory Overhead
12,300
Total Manufacturing Cost
?
Cost of Goods Manufactured
?
Cost of goods sold is calculated to be:
Multiple Choice
$32,300.
$30,150.
$27,300.
$33,300.
$38,300.
The following information was taken from the accounting records of Elliott Manufacturing Corporation. Unfortunately, some of the data were destroyed by a computer malfunction.
Sales Revenue
$ 58,000
Finished Goods Inventory, Beginning
9,000
Finished Goods Inventory, Ending
6,000
Cost of Goods Sold
?
Gross Margin
25,000
Direct Materials Used
10,000
Selling and Administrative Expense
?
Operating Income
14,000
Work-in-Process Inventory, Beginning
?
Work-in-Process Inventory, Ending
5,000
Direct Labor Used
9,000
Factory Overhead
12,000
Total Manufacturing Cost
?
Cost of Goods Manufactured
?
Selling and administrative expenses are calculated to be:
Multiple Choice
$4,000.
$9,000.
$11,000.
$12,000.
$16,000.
The following information was taken from the accounting records of Elliott Manufacturing Corp.
Unfortunately, some of the data were destroyed by a computer malfunction.
Sales Revenue
$58,000
Finished Goods Inventory, Beginning
9,000
Finished Goods Inventory, Ending
6,000
Cost of Goods Sold
Gross Margin
25,000
Direct Materials Used
10,000
Selling and Administrative Expense
Operating Income
Work-in-Process Inventory, Beginning
Work-in-Process Inventory, Ending
14,000
5,000
Direct Labor Used
9,000
Factory Overhead
12,000
Total Manufacturing Cost
Cost of Goods Manufactured
Work in process inventory, beginning, is calculated to be:
Chapter 7 Solutions
Fundamentals Of Cost Accounting (6th Edition)
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