EX 19-2
a.
Cost of goods sold:
Sales $775,000
Less gross profit 265,000
Cost of goods sold $510,000
b.
Direct materials cost:
Materials purchased $303,000
Less: Indirect materials $ 32,000
Materials inventory 35,000 67,000
Direct materials cost $236,000
c.
Direct labor cost:
Total manufacturing costs for the period $620,000
Less: Direct materials cost $236,000
Factory overhead 112,500 348,500
Direct labor cost $271,500
EX 19-10
Predetermined overhead rate 1,400,000/30,625 = $45.71 per labor hour
EX 19-14
a. WRECKIN RONNIE, INC.
Income Statement
For the Month Ended July 31, 2008
Revenues $520,000
Cost of goods sold 301,300
Gross profit $218,700
Selling expenses $119,000
Administrative expenses 52,100 171,100
Income from operations $ 47,600
b. Materials inventory:
Purchased materials $165,800
Less: Materials used in production 147,600
Materials inventory, July 31 $ 18,200
Work in process inventory:
Materials used in production $147,600
Direct labor 96,250
Factory overhead (80% *ƒ— $96,250) 77,000
Additions to work in process $320,850
Less: Transferred to finished goods 302,900
Work in process inventory, July 31 $ 17,950
Finished goods inventory:
Transferred to finished goods $302,900
Less: Cost of goods sold 301,300
Finished goods inventory, July 31 $ 1,600
PR 19-1A
Materials purchased to account, $233,000.
Raw Materials Inventory $233,000
Accounts Payable $233,000
Materials purchased on credit
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Materials requisitioned, $208,300, of which $5,600 was for general factory use.
Work In Process Inventory $202,700
Factory Overheads – Indirect materials $5,600
Raw Materials Inventory $208,300
Materials requisitioned and used – Indirect materials
$5,600
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Factory labor used, $190,500, of which $62,500 was indirect.
Work In Process Inventory $128,000
Factory Overheads – Indirect Labor $ 62,500
Wages Payable $190,500
Direct and indirect labor cost
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Other costs incurred on account were for factory overhead, $89,300; selling expenses,
$64,000; and administrative expenses, $37,800.
Factory Overheads – Indirect Labor $96,800
Accounts Payable $89,300
Prepaid Expenses “€“ Factory Overhead $7,500
Other factory overheads incurred
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Selling Expenses $65,300
Administrative Expenses $39,050
Accounts Payables $101,800
Prepaid Expenses “€“ Selling expenses $ 1,300
Prepaid Expenses “€“ Administrative expenses $ 1,250
Manufacturing Overhead $18,900
Accumulated Depreciation $18,900
Depreciation expense $17,300
Accumulated Depreciation $17,300
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Finished Goods $583,300
Work In Process Inventory $583,300
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Cost of Goods Sold $577,700
Finished Goods $577,700