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Beginning raw materials inventory _______ ______
Ending raw materials inventory _______ ______
Raw material purchases _______ ______
Depreciation of factory building _______ ______
Cost of goods manufactured _______ ______
167. Information for Gifford, Inc., as of December 31 follows. Prepare a manufacturing
statement for the year ended December 31.
Administrative salaries $ 35,000
Depreciation of factory equipment 25,000
Depreciation of delivery vehicles 6,000
Direct labor 68,000
Factory supplies used 9,000
Finished goods inventory, January 1 57,000
Finished goods inventory, December 31 ?
Factory insurance 15,500
Interest expense 12,000
Factory utilities 14,000
Factory maintenance 7,500
Raw materials inventory, January 1 5,000
Raw materials inventory, December 31 4,000
Raw material purchases 125,000
Rent on factory building 25,000
Repairs of factory equipment 11,500
Sales commissions 37,500
Goods in process inventory, January 1 3,500
Goods in process inventory, December 31 2,700
168. Information for the Ace Manufacturing Company follows. Compute the cost of goods
manufactured for this company.
Beginning raw materials inventory $ 53,200
Beginning goods in process, inventory 78,400
Ending raw materials inventory 58,100
Ending goods in process, inventory 98,000
Direct labor 149,800
Total factory overhead 105,000
Raw material purchases 210,000
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169. Information for York Plastics as of December 31 follows. Prepare (a) the company’s
manufacturing statement for the year ended December 31; (b) prepare the company’s income
statement that reports separate categories for selling and general and administrative expenses.
Administrative salaries expense $ 135,000
Depreciation expense - Factory equipment 52,400
Depreciation expense - Delivery vehicles 36,200
Depreciation expense - Office equipment 24,800
Advertising expense 22,350
Direct labor 268,000
Factory supplies used 12,000
Income taxes expense 91,500
Indirect labor 35,000
Indirect material 24,000
Factory insurance 15,500
Factory utilities 14,000
Factory maintenance 7,500
Inventories
Raw materials inventory, January 1 32,000
Raw materials inventory, December 31 28,000
Goods in process inventory, January 1 33,780
Goods in process inventory, December 31 37,460
Finished goods inventory, January 1 56,970
Finished goods inventory, December 31 62,000
Raw materials purchases 325,000
Rent expense - Factory 50,000
Rent expense – Office space 24,000
Rent expense – Selling Space 24,000
Sales salaries expense 97,500
Sales 1,452,000
Sales discounts 29,000
Fill in the Blank Questions
170. ___________________ is an activity that provides financial and nonfinancial information to
an organization's managers and other internal decision makers.
171. ___________________ is the process of setting goals and making plans to achieve them.
172. ____________________ is the process of monitoring plans and evaluating an organization's
activities and employees.
173. The focus of managerial accounting is on providing ________________ reports while the
focus of financial accounting is on providing _____________ reports.
174. A _________________ system means that a company acquires or produces inventory only
when needed.
175. The model whose goal is to eliminate waste while satisfying the customer and providing a
positive return to the company is the _____________________.
176. _____________________ rejects the notions of "good enough" or "acceptable" and
challenges employees and managers to continuously experiment with new and improved
business practices.
177. The ______________ aids continuous improvement by augmenting financial measures with
information on the drivers or indicators of future financial performance along four dimensions:
(1) financial, (2) customer, (3) internal business processes, and (4) learning and growth.
178. _______________ is the deliberate misuse of the employer's assets for the employee's
personal gain.
179. Policies and procedures used by management to monitor and control business activities are
known as ____________________________.
180. _______________ are beliefs that distinguish right from wrong.
181. The process of identifying costs as direct or indirect is referred to as classifying costs by
_______________.
182. The potential benefit lost by taking a specific action from two or more choices is an
_____________________________.
183. A _________________ cost changes in proportion to changes in the volume of activity.
184. A _________________ cost does not change in proportion to changes in the volume of
activity within the relevant range.
185. A _________________ cost contains a combination of fixed and variable costs.
186. A ___________________ cost has already been incurred and cannot be avoided or changed,
so it irrelevant to decision making.
187. An _____________________ cost requires the future outlay of cash and is relevant for
decision making.
188. Expenditures necessary and integral to the manufacture of finished products are
________________ costs.
189. Expenditures that flow directly to the current income statement and are not reported as
assets are ___________________ costs.
190. _____________________ inventory consists of goods a company acquires to use in making
products.
191. ____________________ inventory consists of products in the process of being
manufactured but not yet complete.
192. ____________________ inventory consists of completed products ready for sale by a
manufacturer.
193. A manufacturer's inventory that is not completely finished is called ________________ .
194. One of the main differences between the calculation of cost of goods sold for a
merchandiser and that of a manufacturer is that the calculation includes cost of goods purchased
for the merchandiser, but the manufacturer replaces that with __________________________.
195. ___________________________ reveals how much raw materials inventory is available in
terms of the number of days’ sales.
196. Expenditures incurred in the process of converting raw materials to finished goods, that
include direct labor and factory overhead are known as _________________________.
197. Expenditures directly associated with the manufacture of finished goods that include direct
materials and direct labor are _____________________ costs.
198. Herren, Inc. reported the following data regarding costs and inventories for the current year:
beginning goods-in-process inventory, $4,000; beginning finished goods inventory, $2,000; cost
of goods manufactured, $11,500; operating expenses, $3,000; ending finished goods inventory,
$1,000; ending goods-in-process inventory, $1,500. Cost of goods sold for Herren, Inc. equals
____________________.
199. For a manufacturer, the cost of goods sold can be computed by adding the beginning
finished goods inventory to ________________________ and then subtracting the ending
finished goods inventory.
