25
Manufacturing
1. Raw material, direct labor, overhead.
3. Raw material inventory; work-in-process inventory; finished goods inventory.
4. Raw material inventory (Beg.)
+ Net purchases
− Raw material inventory (End.)
5. Receiving reports acknowledge receipt of all materials and supplies from vendors. Material
7. Bills of lading are documents that are used to show the shipment of products to customers.
8.
9. Direct labor dollars; direct labor hours or machine hours. The amount of overhead to be
10. The manufacturing worksheet has a statement of cost of goods manufactured section, which
is then updated on the Income Statement section of the worksheet.
Supplies
Other Overhead
Raw
Material
Indirect
Labor
Direct
Labor
Overhead
Control
Applied
Work-in–
Process
Cost of
Goods Sold
SOLUTIONS TO CONCEPT CHECKS
1.
a.
Raw Material
b.
Direct Labor
c.
Overhead
d.
Raw Material
2.
Beginning raw materials inventory
$6,700
Add: Purchases of raw materials
86,000
Raw materials available for use
92,700
Less: Ending raw materials inventory
13,100
Raw materials used
$79,600
3.
Raw materials inventory, June 1
$3,200
Add: Raw materials purchases
16,800
Raw materials available for use
20,000
Less: Raw materials inventory, June 30
5,200
Cost of raw materials used
14,800
Direct labor
7,800
Overhead
6,400
Total manufacturing costs
$29,000
Accounts Dr. Cr.
4.
a.
Work-in-Process Inventory
7,000
Raw Materials Inventory
7,000
b.
Work-in-Process Inventory
4,400
Payroll Payable
4,400
c.
Manufacturing Overhead-Control
2,900
Supplies Inventory
2,900
d.
Manufacturing Overhead-Control
6,000
Payroll Payable
6,000
e.
Manufacturing Overhead-Control
1,750
Rent Expense
1,100
Depreciation Expense
650
SOLUTIONS TO SET A EXERCISES
25A-1.
a.
Raw Material
b.
Overhead
c.
Direct Labor
d.
Overhead
25A-2.
EXERCISES (CONTINUED)
25A-4.
May
a. Work-in-Process Inventory
78
0
0
0
00
Raw Material Inventory
78
0
0
0
00
b. Work-in-Process Inventory
85
0
0
0
00
Payroll Payable
85
0
0
0
00
c. Manufacturing Overhead-Control
6
0
0
0
00
Supplies Inventory
6
0
0
0
00
d. Manufacturing Overhead-Control
17
0
0
0
00
Payroll Payable
17
0
0
0
00
e. Manufacturing Overhead-Control
3
8
5
0
00
Rent Expense
3
1
0
0
00
Depreciation Expense
7
5
0
00
f. Work-in-Process Inventory
51
0
0
0
00
Manufacturing Overhead-Applied
51
0
0
0
00
g. Finished Goods Inventory
62
0
0
0
00
Work-in-Process Inventory
62
0
0
0
00
h. Accounts Receivable
50
0
0
0
00
Sales
50
0
0
0
00
Cost of Goods Sold
35
0
0
0
00
Finished Goods Inventory
35
0
0
0
00
EXERCISES (CONTINUED)
25A–5.
a. Ending Balances
Debit Column
Credit Column
Raw Material Inventory Balance Sheet
Statement of Cost of Goods Manufactured
Work-in-Process Inventory Balance Sheet
Statement of Cost of Goods Manufactured
Finished Goods Inventory Balance Sheet
Income Statement
b. Beginning Balances Debit Columns
Raw Materials Inventory Statement of Cost of Goods Manufactured and Trial Balance
Work-in-Process Inventory Statement of Cost of Goods Manufactured and Trial Balance
Finished Goods Inventory Income Statement and Trial Balance
SOLUTIONS TO SET B EXERCISES
25B-1.
a.
Raw Material
b.
Overhead
c.
Direct Labor
d.
Overhead
25B-2.
EXERCISES (CONTINUED)
25B-4.
May
a. Work-in-Process Inventory
75
0
0
0
00
Raw Material Inventory
75
0
0
0
00
b. Work-in-Process Inventory
50
0
0
0
00
Payroll Payable
50
0
0
0
00
c. Manufacturing Overhead-Control
7
4
0
0
00
Supplies Inventory
7
4
0
0
00
d. Manufacturing Overhead-Control
19
0
0
0
00
Payroll Payable
19
0
0
0
00
e. Manufacturing Overhead-Control
3
6
0
0
00
Rent Expense
3
1
0
0
00
Depreciation Expense
5
0
0
00
f. Work-in-Process Inventory
40
0
0
0
00
Manufacturing Overhead-Applied
40
0
0
0
00
g. Finished Goods Inventory
68
0
0
0
00
Work-in-Process Inventory
68
0
0
0
00
h. Accounts Receivable
49
0
0
0
00
Sales
49
0
0
0
00
h. Cost of Goods Sold
38
0
0
0
00
Finished Goods Inventory
38
0
0
0
00
EXERCISES (CONTINUED)
25B–5.
a. Ending Balances
Debit Column
Credit Column
Raw Materials Inventory Balance Sheet Statement of Cost of Goods Manufactured
Work-in-Process Inventory Balance Sheet Statement of Cost of Goods Manufactured
Finished Goods Inventory Balance Sheet Income Statement
b. Beginning Balances Debit Columns
Raw Materials Inventory Statement of Cost of Goods Manufactured and Trial Balance
Work-in-Process Inventory Statement of Cost of Goods Manufactured and Trial Balance
Finished Goods Inventory Income Statement and Trial Balance