92. A computer virus destroyed some of the accounting records for Hampton Furniture
Company for the periods of 2014-2016. The following information was salvaged from the
computer system.
12/31/14 12/31/15 12/31/16
Beginning direct materials $50,250 F $45,210
Purchases of direct materials A 65,250 70,125
Ending direct materials 34,165 45,210 L
Direct materials used 91,385 54,205 M
Direct labor B 155,050 162,000
Manufacturing overhead 115,325 G 127,145
Total manufacturing costs C 319,255 364,130
Beginning wok-in-process inventory 36,450 H 29,635
Ending work-in-process inventory 21,985 29,635 N
Costs of goods manufactured 386,700 I 362,920
Beginning finished goods inventory 37,000 J 42,500
Ending finished goods inventory D 42,500 39,550
Cost of goods sold 337,050 315,755 O
Net sales 550,000 495,000 P
Selling and Administrative Expenses 135,950 K 130,130
Net income E 46,250 39,000
Required:
Determine the correct amounts for items A through P.
93. Dave’s Lighting Inc. produces lamps for the construction industry. During the year, 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 a statement of cost of goods sold.
94. The following information applies to the McAdoo Company for the year.
Factory Rent $90,000
Direct Materials Inventory, Beginning 55,000
Direct Materials Inventory, Ending 50,000
Direct Materials Purchases 350,000
Direct Labor-Wages 580,000
Indirect Labor-Wages 35,000
Finished Goods Inventory, Beginning 50,000
Finished Goods Inventory, Ending 75,000
Indirect Materials 65,000
Plant Utilities 15,000
General and Administrative 110,000
Work-in-Process Inventory, Beginning 50,000
Work-in-Process Inventory, Ending 55,000
Marketing Expenses 210,000
Sales Revenue 1,950,000
Required:
Prepare a statement of cost of goods manufactured and an income statement for the year.
95. Consider the following information for Blue Water Equipment, Inc., a manufacturer of
sailboat rigging, blocks, and cordage.
Advertising expenses $16,000
Depreciation expense-admin. office 73,000
Depreciation expense-plant 197,000
Depreciation expense-delivery trucks 34,000
Direct materials inventory, beginning 33,000
Direct materials inventory, ending 28,000
Direct materials purchases 190,000
Direct labor 345,000
Indirect labor 128,000
Finished goods inventory, beginning 66,000
Finished goods inventory, ending 43,000
Insurance on plant 44,000
Heat and light for plant 23,000
Repairs on plant building 34,000
Supervisor’s salary-plant 85,000
Supplies-plant 21,000
Supplies-administrative office 42,000
Work-in-process inventory, beginning 14,000
Work-in-process inventory, ending 11,000
Sales representatives’ salaries 216,000
Sales revenue 1,675,000
Required:
Prepare a statement of cost of goods manufactured and an income statement for Blue Water
Equipment, Inc. for the year ending December 31, 20XX.
96. Greenbelt Hospital has the following activities in its value chain of providing service to
each inpatient admission:
1. Schedule patient.
2. Verify insurance.
3. Admit patient.
4. Prepare patient’s room.
5. Review doctor’s report.
6. Feed patient.
7. Order tests.
8. Move to/from laboratory.
9. Administer lab tests.
10. Order pharmaceuticals.
11. Complete patient report.
12. Check patient’s vital signs.
13. Prepare patient for operation.
14. Move to/from operating room.
15. Operate.
16. Collect charges.
17. Discharge patient.
18. Bill insurance.
Required:
Assume that the cost object is the individual patient. Determine the appropriate cost driver(s) for
each activity.
97. The following information pertains to the Petrie Company:
Prime costs $180,000
Conversion costs 215,000
Direct materials used 95,000
Beginning work in process 75,000
Ending work in process 65,000
Required:
Determine the cost of goods manufactured.
98. The following information was taken from the accounting records of Tomek
Manufacturing Company. Unfortunately, some of the data were destroyed by a computer
malfunction.
Case A Case B
Sales $150,000 ?
Finished goods inventory, Jan. 1, 2013 35,000 28,000
Finished goods inventory, Dec. 31, 2013 40,000 ?
Cost of goods sold ? 61,000
Gross margin 25,000 23,000
Selling and administrative expenses ? 1,000
Operating income 10,000 22,000
Work in process, Jan. 1, 2013 ? 14,000
Direct materials used 18,000 8,000
Direct labor 35,000 9,000
Factory overhead 50,000 ?
Total manufacturing costs ? 35,000
Work in process, Dec. 31, 2013 22,000 ?
Cost of goods manufactured ? 45,000
Required:
Calculate the unknowns indicated by question marks.