Chapter 2
169. See the following separate cases.
Case #1 Case #2
Purchase of materials $ 5,000 C
Materials inventory (beginning balance) A $ 220
Materials inventory (ending balance) 1,000 350
Direct labor 7,000 4,250
Factory supervision 1,500 1,100
Factory supplies 1,250 900
Total manufacturing costs 14,500 D
Work in process inventory (beginning balance) 1,200 1,230
Work in process inventory (ending balance) B 650
Cost of goods manufactured 14,600 10,200
Required: Solve for the missing amounts (A,B,C,D).
Chapter 2
170. Rancor Company’s accountant prepared the following income statement for the month of August.
Rancor Company
Income Statement
For the Month of August
Sales revenue $912,200
Cost of goods sold 601,920
Gross margin $310,280
Less:
Selling expense 164,160
Administrative expense 63,840
Operating income $ 82,280
Required: (Round to the nearest whole percent)
A. Calculate the sales revenue percent
B. Calculate the cost of goods sold percent
C. Calculate the gross margin percent
D. Calculate the selling expense percent
E. Calculate the administrative expense percent
F. Calculate the operating income percent
Chapter 2
171. Extrema Company supplied the following data at the end of the current year.
Finished goods inventory, Jan 1. $ 12,000
Finished goods inventory, Dec. 31 7,500
Cost of goods manufactured 152,380
Sales revenue 212,000
Sales commissions 19,080
Research and development costs 15,900
Required:
A. Calculate the cost of goods sold percent
B. Calculate the gross margin percent
C. Calculate the selling expense percent
D. Calculate the administrative expense percent
E. Calculate the operating income percent
Chapter 2
172. Rizzuto Company supplied the following information for the month of January.
Cost of Goods Sold percent 62%
Selling Expense percent 6%
Administrative Expense percent 13%
Required: Reconstruct Rizzuto’s income statement for January assuming that their total sales revenue for the month
equaled $500,000.
173. Cashman Company supplied the following information for the month of December.
Operating income percent 10.5%
Gross margin percent 30%
Required: Solve for the following amounts assuming that Cashman Company’s operating income in December was
$44,100.
Chapter 2
A. Sales revenue
B. Cost of goods sold
C. Total selling and administrative expenses
174. Wapato Company produces a product with the following per unit costs.
Direct materials $17
Direct labor 11
Overhead 12
Last year, Wapato produced and sold 3,000 units at a sales price of $80 each. Total selling and administrative expenses
were $25,000.
Required: Solve for the following:
A. Total cost of goods sold for last year
B. Operating income for last year
C. Total gross margin for last year
D. Prime cost per unit
Chapter 2
175. Tesco Company showed the following costs for last month:
Direct materials $40,000
Direct labor 35,000
Overhead 52,000
Selling expense 17,000
Administrative expense 12,000
Last month, Tesco produced and sold 20,000 units at a sales price per unit of $18. Assume no beginning or ending
inventory balances for work in process and finished goods inventories.
Required: Solve for the following amounts.
A. Total product cost for last month
B. Unit product cost for last month
C. Total period costs
D. Gross margin for last month
E. Operating income for last month
Chapter 2
176. Stabler Company, a manufacturing firm, has provided the following information for the month of May:
Factory supplies used $22,000
Depreciation on factory building 10,000
Commissions for sales personnel 32,000
Salary of company CFO 9,000
Factory janitorial costs 3,000
Research and development 5,000
Depreciation on corporate office 8,500
Advertising costs 2,500
Direct labor cost 40,000
Purchases of raw materials 15,000
Finished goods inventory units, May 1 4,000
Finished goods inventory units, May 31 6,500
Finished goods inventory, May 1 36,000
Finished goods inventory, May 31 59,865
Work in process inventory, May 1 7,500
Work in process inventory, May 31 3,300
Materials inventory, May 1 2,100
Materials inventory, May 31 4,200
Required:
A. Prepare a Statement of Cost of Goods Manufactured.
B. Calculate the cost of one unit assuming 10,000 units were completed during May.
C. Prepare a Statement of Cost of Goods Sold.
D. Calculate the number of units that were sold during May.
E. Prepare an Income Statement assuming the sales price per unit is $35.
Chapter 2
Chapter 2
177. Advertising costs
178. Cost accountant’s salary
179. Factory supervisor’s salary
Chapter 2
180. Research and development costs
181. Marketing costs
182. Cost of shipping products to customers
183. Supplies for factory washroom
184. Assembly line worker’s wages
Chapter 2
185. cost of tires
186. factory supplies
187. general accounting costs
188. factory security costs
189. factory janitorial costs
190. salary of chief executive officer