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goods inventory
Cost of goods
sold
377,500
315,755
O
Net sales
550,000
495,000
P
Selling and
Administrative
Expenses
135,950
K
130,130
Net income
E
46,250
39,000
Beginning
direct
materials
$50,250
$45,210
Purchases of
Ending direct
Direct
materials
used
Direct labor
Manufacturing
overhead
Total
work-in–
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139.
Ryan’s Lazer Lighting Inc. produces lamps. During 2016, the company incurred the
following costs:
Factory rent
$80,000
Direct labor used
425,000
Factory utilities
50,000
Direct materials purchases
600,000
Indirect materials
150,000
Indirect labor
90,000
Inventories for the year were:
January 1
December 31
Direct materials
$100,000
$75,000
Work in process
20,000
10,000
Finished goods
250,000
215,000
Required:
Prepare a statement of cost of goods manufactured and cost of goods sold.
Direct Materials Used
Inventory, Beginning
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140.
141.
142.
143.
144.
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145.
The following information applies to the Jamison Tools Company for the year ended
December 31, 2016:
Factory Rent
$330,000
Direct Materials Inventory, Beginning
96,000
Direct Materials Inventory, Ending
87,000
Direct Materials Purchases
654,000
Direct Labor-Wages
425,000
Indirect Labor-Wages
28,000
Finished Goods Inventory, Beginning
25,000
Finished Goods Inventory, Ending
44,000
Indirect Materials
66,000
Plant Utilities
40,000
General and Administrative
101,350
Work-in-Process Inventory, Beginning
27,000
Work-in-Process Inventory, Ending
33,000
Marketing Expenses
225,000
Sales Revenue
2,550,000
Required:
Prepare a statement of cost of goods manufactured and an income statement for the year
ended December 31, 2016.
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2-152
146.
The following information applies to the Garden Master Company for the year ended
December 31, 2016:
Factory Rent
$80,000
Direct Materials Inventory, Beginning
50,000
Direct Materials Inventory, Ending
45,000
Direct Materials Purchases
325,000
Direct Labor-Wages
550,000
Indirect Labor-Wages
25,000
Finished Goods Inventory, Beginning
50,000
Finished Goods Inventory, Ending
75,000
Indirect Materials
50,000
Plant Utilities
25,000
General and Administrative
130,000
Work-in-Process Inventory, Beginning
50,000
Work-in-Process Inventory, Ending
55,000
Marketing Expenses
180,000
Sales Revenue
1,825,000
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147.
Michael Corporation has provided the following data for the month of July:
Sales
$280,000
Raw materials purchases
76,000
Direct labor cost
42,000
Manufacturing overhead
77,000
Selling expenses
20,000
Administrative expense
35,000
Inventories:
Beginning
Ending
Raw materials
$22,000
$33,000
Work-in–
process
15,000
23,000
Finished goods
52,000
43,000
Direct Materials:
Beginning materials inventory
materials
Direct labor
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148.
The following information is available, regarding the Crossover Company:
Sales 25,000 units per year at $45 per unit
Production 30,000 units in 2016 and 20,000 units in 2017
At the beginning of 2016 there was no inventory
Variable manufacturing costs are $30.00 per unit
Fixed manufacturing costs are $150,000 per year
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