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Managerial Accounting 1B
Financial and Managerial Accounting
Chapter 14
1.
Exercise 14-8
Cost of goods sold
computation L.O. P1
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Century Merchandising |
New Homes Manufacturing |
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Beginning inventory |
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Merchandise |
$ |
250,000 |
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Finished goods |
500,000 |
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Cost of purchases |
460,000 |
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Cost of goods manufactured |
886,000 |
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Ending inventory |
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150,000 |
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144,000 |
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Compute cost of goods sold for each of these two companies for the year ended December 31, 2011. (Omit the “$” sign in your response.) |
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Century Merchandising |
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New Homes Manufacturing |
Exercise 14-9 Cost of goods manufactured and cost of goods sold computation L.O. P1, P2
[The following information applies to the questions displayed below.]
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Using the following data, |
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Canyon Company |
Rossings Company |
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Beginning finished goods inventory |
14,000 |
18,450 |
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Beginning goods in process inventory |
16,500 |
21,950 |
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Beginning raw materials inventory |
9,250 |
11,000 |
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Rental cost on factory equipment |
29,000 |
24,750 |
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Direct labor |
21,000 |
37,000 |
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Ending finished goods inventory |
19,650 |
15,300 |
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Ending goods in process inventory |
24,000 |
18,000 |
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Ending raw materials inventory |
7,300 |
9,200 |
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Factory utilities |
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Factory supplies used |
10,200 |
5,200 |
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General and administrative expenses |
23,000 |
45,000 |
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Indirect labor |
3,250 |
9,660 |
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Repairs—Factory equipment |
6,780 |
3,500 |
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Raw materials purchases |
35,000 |
54,000 |
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Sales |
52,000 |
48,000 |
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Section Break |
Difficulty: Hard |
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| Exercise 14-9 Cost of goods manufactured and cost of goods sold computation L.O. P1, P2 |
Learning Objective: 14-P2 Prepare a manufacturing statement and explain its purpose and links to financial statements. |
2.
Exercise 14-9 Part 1
| 1. |
Compute the cost of goods manufactured for both Canyon Company and Rossings Company. (Omit the “$” sign in your response.) |
| Cost of goods manufactured |
rev: 03-04-11
3.
Exercise 14-9 Part 2
| 2. |
Compute cost of goods sold for both Canyon Company and Rossings Company. (Omit the “$” sign in your response.) |
|
Cost of goods sold |
4.
Exercise 14-11 Manufacturing statement preparation L.O. P2
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Given the following selected account balances of Randa Company. |
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1,252,000 |
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Raw materials inventory, Dec. 31, 2010 |
39,000 |
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Goods in process inventory, Dec. 31, 2010 |
55,900 |
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Finished goods inventory, Dec. 31, 2010 |
64,750 |
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177,600 |
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227,000 |
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Factory computer supplies used |
19,840 |
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49,000 |
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7,250 |
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Rent cost of factory building |
59,000 |
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Advertising expense |
96,000 |
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131,300 |
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Raw materials inventory, Dec. 31, 2011 |
44,700 |
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Goods in process inventory, Dec. 31, 2011 |
43,500 |
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Finished goods inventory, Dec. 31, 2011 |
69,300 |
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Prepare its manufacturing statement for the year ended on December 31, 2011. (Input all amounts as positive values. Omit the “$” sign in your response.) |
5.
Exercise 14-12 Income statement preparation L.O. P2
|
Following are the selected account balances of Randa Company: |
Sales $ 1,252,000 Raw materials inventory, Dec. 31, 2010 39,000 Goods in process inventory, Dec. 31, 2010 55,900 Finished goods inventory, Dec. 31, 2010 64,750 Raw materials purchases 177,600 Direct labor 227,000 Factory computer supplies used 19,840 Indirect labor 49,000 Repairs—Factory equipment 7,250 Rent cost of factory building 59,000 Advertising expense 96,000 General and administrative expenses 131,300 Raw materials inventory, Dec. 31, 2011 44,700 Goods in process inventory, Dec. 31, 2011 43,500 Finished goods inventory, Dec. 31, 2011 69,300
|
Prepare an income statement for Randa Company (a manufacturer). Assume that its cost of goods manufactured is $546,390. (Input all amounts as positive values. Omit the “$” sign in your response.) |
Problem 14-8A Manufacturing and income statements; inventory analysis L.O. P2
[The following information applies to the questions displayed below.]
|
The following calendar year-end information is taken from the December 31, 2011, adjusted trial balance and other records of Plaza Company. |
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30,750 |
677,480 |
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Depreciation expense—Office equipment |
Income taxes expense |
235,725 |
|
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Depreciation expense—Selling equipment |
10,600 |
58,875 |
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Depreciation expense—Factory equipment |
35,550 |
Miscellaneous production costs |
10,425 |
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Factory supervision |
104,600 |
Office salaries expense |
65,000 |
|
9,350 |
927,000 |
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Rent expense—Office space |
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Inventories |
Rent expense—Selling space |
28,100 |
|
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Raw materials, December 31, 2010 |
168,850 |
Rent expense—Factory building |
78,800 |
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Raw materials, December 31, 2011 |
184,000 |
Maintenance expense—Factory equipment |
37,400 |
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Goods in process, December 31, 2010 |
17,700 |
4,527,000 |
|
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Goods in process, December 31, 2011 |
21,380 |
Sales discounts |
64,500 |
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Finished goods, December 31, 2010 |
169,350 |
Sales salaries expense |
394,560 |
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Finished goods, December 31, 2011 |
138,490 |
| Problem 14-8A Manufacturing and income statements; inventory analysis L.O. P2 |
6.
Problem 14-8A Part-1
|
Required: |
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Prepare the company’s 2011 manufacturing statement. (Input all amounts as positive values. Omit the “$” sign in your response.) |
7.
Problem 14-8A Part-2
|
Prepare the company’s 2011 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. (Input all amounts as positive values. Omit the “$” sign in your response.) |
