Chapter 26 – Accounting for Manufacturing Activities
62. The following information appears on the income statement of the Richer Company at the
end of the year.
Gross Profit on Sales was:
Chapter 26 – Accounting for Manufacturing Activities
Short Answer Questions
68. Stellar Manufacturing had a beginning raw materials inventory of $220,000. The firm had
net purchases of $625,000 for the period and an ending raw materials inventory of $199,000.
What was the cost of raw materials used?
69. Bolton Company’s total manufacturing cost for the year was $1,785,000. The firm’s
manufacturing overhead was $315,000, and its cost of raw materials used was $842,000.
What was the direct labor cost for the year?
26–28
26–31
72. Selected account balances for Reed Manufacturing Company on December 31, 2013, the
end of the fiscal year, are given below. Data about the beginning and ending inventories are
also given. Use this information to prepare a statement of cost of goods manufactured and an
income statement for 2013.
Chapter 26 – Accounting for Manufacturing Activities
26–32
26–33
26–34
73. Selected account balances for Reed Manufacturing Company on December 31, 2013, the
end of the fiscal year, are given below. Data about the beginning and ending inventories are
also given. Record the adjusting entries for the inventory accounts on page 5 of a general
journal. Skip a line and record the entry to close the manufacturing cost accounts. Omit
descriptions.
26–35
26–36
74. The accounts and the Adjusted Trial Balance section of Spencer Manufacturing’s
worksheet are given below.
Instructions:
(1) Enter the account names in the Account Name column and the adjusted trial balance in the
Adjusted Trial Balance columns of a 12-column manufacturing worksheet. Or use a 10-
column worksheet and use the last four columns, changing the column headings as needed.
(2) Extend the balances to the appropriate columns and complete the worksheet for the year
ended December 31, 2013.
(3) Record the closing entries for all revenue and expense accounts and the Manufacturing
Summary account on page 9 of a general journal. Omit descriptions.
Chapter 26 – Accounting for Manufacturing Activities
26–37
Chapter 26 – Accounting for Manufacturing Activities
26–38
26–39
26–40
75. The above listed items are used by Paige Manufacturing to make dollhouses. Categorize
each as Direct Materials (DM), Direct Labor (DL), or Manufacturing Overhead (MOH).
76. From the information given, determine total direct and total indirect costs.