Managerial Accounting 1B Ch14

Managerial Accounting 1B

Financial and Managerial Accounting

Chapter 14

 

1.    

Exercise 14-8

Cost of goods sold

computation L.O. P1

 

 

 

     

           

 

           

          $

   

   

           

           

   

               

 

     Merchandise    

           

     Finished goods            

   

Century Merchandising

New Homes Manufacturing

  Beginning inventory

     Merchandise

$

250,000

     Finished goods

500,000

  Cost of purchases

460,000

 

 Cost of goods manufactured

886,000

  Ending inventory

150,000

144,000

  

Compute cost of goods sold for each of these two companies for the year ended December 31, 2011. (Omit the “$” sign in your response.)

  

  Cost of goods sold

 

 

  Century Merchandising

  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.]

Using the following data,

  

 

 

 

  $

    $

   

   

     

   

   

     

   

   

     

   

   

     

   

   

     

   

   

     

   

   

     

   

    11,000       14,000    

   

     

   

   

     

   

   

     

   

   

     

   

   

     

   

salaries

   

     

   

Canyon Company

Rossings Company

  Beginning finished goods inventory

14,000

18,450

  Beginning goods in process inventory

16,500

21,950

  Beginning raw materials inventory

9,250

11,000

  Rental cost on factory equipment

29,000

24,750

  Direct labor

21,000

37,000

  Ending finished goods inventory

19,650

15,300

  Ending goods in process inventory

24,000

18,000

  Ending raw materials inventory

7,300

9,200

  Factory utilities

  Factory supplies used

10,200

5,200

  General and administrative expenses

23,000

45,000

  Indirect labor

3,250

9,660

  Repairs—Factory equipment

6,780

3,500

  Raw materials purchases

35,000

54,000

  Sales

52,000

48,000

 

 

 

Section Break

Difficulty: Hard

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.)

  

  Canyon Company Rossings Company

   

 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.)

 

  Canyon Company Rossings Company

   

 Cost of goods sold

  4.    

Exercise 14-11 Manufacturing statement preparation L.O. P2

Given the following selected account balances of Randa Company.

  

     

  Sales $

 

 

 

  Raw materials purchases  

  Direct labor  

 

  Indirect labor  

  Repairs—Factory equipment  

 

 

  General and administrative expenses  

 

 

 

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  

177,600  

227,000  

  Factory computer supplies used

19,840  

49,000  

7,250  

  Rent cost of factory building

59,000  

  Advertising expense

96,000  

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 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.

  

               

  Advertising expense $

    Direct labor $

 

  9,250  

 

 

 

    Indirect labor  

 

 

 

 

 

 

 

 

 

  Factory supplies used  

    Raw materials purchases  

 

  Factory utilities   35,000  

  24,000  

     

 

 

 

 

 

 

 

 

 

 

 

    Sales  

 

 

 

 

 

 

 

 

 

 

         

30,750

677,480

  Depreciation expense—Office equipment

  Income taxes expense

235,725

  Depreciation expense—Selling equipment

10,600

58,875

  Depreciation expense—Factory equipment

35,550

  Miscellaneous production costs

10,425

  Factory supervision

104,600

  Office salaries expense

65,000

9,350

927,000

  Rent expense—Office space

  Inventories

  Rent expense—Selling space

28,100

     Raw materials, December 31, 2010

168,850

  Rent expense—Factory building

78,800

     Raw materials, December 31, 2011

184,000

  Maintenance expense—Factory equipment

37,400

     Goods in process, December 31, 2010

17,700

4,527,000

     Goods in process, December 31, 2011

21,380

  Sales discounts

64,500

     Finished goods, December 31, 2010

169,350

  Sales salaries

expense

394,560

     Finished goods, December 31, 2011

138,490

 

Section Break

 

Problem 14-8A Manufacturing and income statements; inventory analysis L.O. P2

 

 6.

Problem 14-8A Part-1

Required:

 

1.

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

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.)

      

Are you stuck with your online class?
Get help from our team of writers!