103.
The following information is for the Choplin Company for 2015:
Required:
(1) What is the cost of materials purchased?
(2) What is the cost of goods sold?
(3) What is gross profit?
(4) What is net profit?
104.
Product cost vs. period cost
Briefly define the terms product cost and period cost. Explain why the distinction between
these two types of costs is important.
105.
Indicate whether each of the following is a product cost or a period cost:
(a) Electricity for lighting a factory building.
(b) Costs of delivering finished bicycles to dealers.
(c) Cost of a store detective in a retail establishment.
(d) Cost of eggs in a bakery.
(e) Cost of chocolate to a candy manufacturer.
(f) Salary of injection molding machine operator in a plastics factory.
(g) Salary of a sewing machine operator in a clothing factory.
(h) Depreciation of a freezer in an ice cream plant.
106.
Flow of manufacturing costs
The following data are taken from the accounting records of Gregory Mfg. Co.:
Compute the following for the current year:
(a) Direct materials purchased: $___________
(b) Total manufacturing costs charged to production (the Work in Process Inventory
account): $___________
(c) The cost of finished goods manufactured: $___________
(d) The cost of goods sold: $___________
107.
Flow of manufacturing costs
The following data are taken from the accounting records of Victoria Mfg. Co.:
Compute the following amounts:
(a) Direct materials purchased during the period: $___________
(b) Total manufacturing costs charged to production (the Work in Process Inventory
account) during the year: $___________
(c) The cost of finished goods manufactured during the year: $___________
(d) The cost of goods sold during the year: $___________
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108.
Flow of manufacturing costs
The “flow” of manufacturing costs through the ledger of MF Enterprise. Co. during the
month of August is summarized in the following T accounts. Certain amounts have been
omitted and are represented by question marks.
From the data supplied above, determine each of the following amounts. Some of the
required amounts already appear in the T accounts; others require a short computation.
(a) The amount of direct materials purchased during the month: $________
(b) The amount of direct labor cost assigned to production: $___________
(c) The amount of accrued wages payable to direct labor workers at August 31:
$___________
(d) The cost of finished goods manufactured during the month: $___________
(e) The cost of goods sold during the month: $___________
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109.
Flow of manufacturing costs
The “flow” of manufacturing costs through the ledger of Wolpe Mfg. Co. during the month
of October is summarized in the following T accounts. Certain amounts have been omitted
and are represented by question marks.
From the data supplied above, determine each of the following amounts. Some of the
required amounts already appear in the T accounts; others require a short computation.
(a) The amount of direct materials used during the month: $___________
(b) The amount paid to direct labor workers during the month: $___________
(c) The amount of accrued wages payable to direct labor workers at October 31:
$___________
(d) Total manufacturing costs charged (debited) to the Work in Process Inventory account
during the month: $___________
(e) The cost of finished goods manufactured during the month: $___________
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110.
Schedule of cost of finished goods manufactured
The accounting records of Village Cleaning Co. include the following information about the
company’s manufacturing costs and inventories in 2015:
Complete the following Schedule of Cost of Finished Goods Manufactured for the year
ended December 31, 2015:
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111.
Schedule of cost of finished goods manufactured
The accounting records of Hogan Handle Co. include the following information about the
company’s manufacturing costs and inventories for the month of March 2015:
Complete the following Schedule of Cost of Finished Goods Manufactured for the year
ended March 31, 2015:
112.
The following information pertains to the Galaxy Company:
Work in Process, balance as of January 1 $54,500
Work in Process, balance as of December 31 $56,275
During the year, the company used $575,500 in raw materials, incurred $420,500 in direct
labor costs, and $500,000 in manufacturing overhead costs were applied to work in
process. Determine the Costs of Goods Manufactured for the Galaxy Company.