Chapter 16(1): Managerial Accounting Concepts and Principles
162.
The Putney Company reports the following information:
Sales
$76,500
Direct materials used
7,300
Depreciation on factory equipment
4,700
Indirect labor
5,900
Direct labor
10,500
Factory rent
4,200
Factory utilities
1,200
Sales salaries expense
15,600
Office salaries expense
8,900
Indirect materials
1,200
Compute:
a)
product costs
b)
period costs
163.
Identify the following costs as a (a) product cost or (b) period cost for a cake factory.
1. Frosting
2. _____ Baker’s wages
3.
Advertising fees
4.
Transportation out
164.
Classify the following costs as either a product cost or a period cost:
a)
direct materials used
b)
factory utilities
c)
salespersons’ commissions
d)
salary of plant manager
e)
indirect materials used
f)
depreciation on store equipment
g)
indirect labor incurred
h)
advertising expense
i)
direct labor incurred
j)
factory machinery repairs and maintenance
k)
depreciation on factory machinery
l)
plant insurance expired
165.
The following information is available for Carter Corporation:
1)
Materials inventory decreased $4,000.
2)
Materials inventory on December 31 was 50% of materials inventory on January 1.
3)
Beginning work in process inventory was $145,000.
4)
Ending finished goods inventory was $65,000.
5)
Purchases of direct materials were $154,700.
6)
Direct materials used were 2.5 times the cost of direct labor.
7)
Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $156,000 less
than
cost of goods sold.
Compute:
(a)
Finished goods inventory on January 1
(b)
Work in process inventory on December 31
(c)
Direct labor incurred
(d)
Factory overhead incurred
(e)
Materials inventory on January 1
(f)
Materials inventory on December 31
(g)
Direct materials used
166.
The Zoe Corporation has the following information for the month March. Determine the (a) cost of
goods
manufactured, and (b) cost of goods sold.
$69,000
27,000
34,000
15,000
19,500
25,000
23,000
Beginning work in process inventory
Direct materials
Direct labor
Factory overhead
Total manufacturing costs incurred
Total manufacturing costs
Less ending work in process inventory
Cost of goods manufactured
Finished goods inventory, March 1
Cost of goods manufactured
Cost of finished goods available for sale
Less finished good inventory, March 31
Cost of goods sold
167.
Sienna Company has the following information for January:
Cost of materials placed in production
$20,000
Direct labor
15,000
Factory overhead
24,000
Work in process inventory, January 1
2,900
Work in process inventory, January 31
3,500
Calculate the cost of goods manufactured.
168.
Magnus Industries has the following data:
Beginning raw materials inventory
$75,000
Materials purchased
40,000
Ending raw materials inventory
60,000
Calculate the cost of raw materials used.
169.
Watson Company has the following data:
Work in process, beginning
$18,000
Work in process, ending
25,000
Direct labor costs incurred
5,000
Cost of goods manufactured
9,000
Factory overhead
7,000
Calculate the amount of direct materials used.
170.
Laramie Technologies had the following data:
Cost of materials used
$50,000
Direct labor costs
56,000
Factory overhead
28,000
Work in process, beg.
45,000
Work in process, end.
32,000
Calculate the cost of goods manufactured.
171.
Keeton Company had the following data:
Cost of materials used $60,000
Direct labor costs 58,000
Factory overhead 33,000
Work in process, beg. 29,000
Work in process, end. 18,000
Finished goods, beg. 32,000
Finished goods, end. 18,000
Calculate the cost of goods sold.
172.
Zoe Corporation has the following information for the month of March:
$ 92,000
6,000
8,000
25,000
37,000
22,000
23,500
21,000
30,000
257,000
79,000
Prepare (a) a schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c)
the inventory section of the balance sheet.
Chapter 16(1): Managerial Accounting Concepts and Principles
173.
The following data (in thousands of dollars) have been taken from the accounting records of Rayburn
Corporation
for the current year.
Sales
$1,980
Selling expenses
280
Manufacturing overhead
460
Direct labor
400
Administrative expenses
300
Purchases of direct materials
240
Finished goods inventory, beginning
240
Finished goods inventory, ending
320
Direct materials inventory, beginning
80
Direct materials inventory, ending
140
Work in process inventory, beginning
140
Work in process inventory, ending
100
Required: (Present all calculations in thousands of dollars.)
(a)
What was the cost of the direct materials used in production during the year?
(b)
What was the cost of goods manufactured for the year?
(c)
What was the cost of goods sold for the year?
(d)
What was the net income for the year?
Present all calculations in thousands of dollars.
Direct materials inventory, beginning
Purchases of direct materials
Less direct materials inventory, ending
Raw materials used in production
Direct labor
Manufacturing overhead
Total manufacturing costs
$1,040
Less: Work in process inventory, beginning
$1,180
174.
Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the
current
year. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other
operating costs
pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of
$1,800, depreciation of $7,900, and property taxes of $2,600. There was no beginning or ending finished
goods inventory, but work in
process inventory began the year with a $5,500 balance and ended the year
with a $7,500 balance.
Prepare a statement of cost of goods manufactured.
175.
Davis Manufacturing Company had the following data:
January 1
December 31
Accounts receivable
$27,000
$33,000
Materials inventory
22,500
6,000
Work in process inventory
70,200
48,000
Finished goods inventory
3,000
15,000
Collections on account were $625,000.
Cost of goods sold was 68% of sales.
Direct materials purchased amounted to $90,000.
Factory overhead was 300% of the cost of direct labor.
Compute:
a)
Sales revenue (all sales were on account)
b)
Cost of goods sold
c)
Cost of goods manufactured
d)
Direct labor used
e)
Direct materials incurred
f)
Factory overhead incurred
176.
Taylor Industries had a fire and some of its accounting records were destroyed. Available information is
presented
below for the year ended December 31.
Materials inventory, December 31
$ 15,000
Direct materials purchased
28,000
Direct materials used
22,900
Cost of goods manufactured
135,000
Additional information:
Factory overhead is 150% of direct labor cost
Finished goods inventory decreased by $18,000 during the year
Work in process inventory increased by $12,000 during the year
Calculate:
a)
Materials inventory, January 1
b)
Direct labor cost
c)
Factory overhead incurred
d)
Cost of goods sold
177.
Salesman commissions
178.
Factory rent
179.
Depreciation expense—factory
180.
Frosting
181.
Baker’s wages
182.
Depreciation expense—office
183.
Cupcake mix
184.
Sprinkles for decoration (indirect material)
185.
Salesman commissions
186.
Factory rent
187.
Depreciation expense—factory
188.
Frosting
189.
Baker’s wages
190.
Depreciation expense—office
191.
Cupcake mix
192.
Sprinkles for decoration (indirect material)
193.
The production labor wages for the bar stool assemblers
194.
The factory supervisor’s salary for the bar stool factory
195.
Lubricants used on the bar stool manufacturing equipment
196.
Manufacturing costs for wood and steel used in the bar stools
197.
Nails and screws used in the production of the bar stools
198.
Tires for the bicycles
199.
Electricity costs to run the factory
200.
Selling costs for the period
201.
Delivery costs to take the bicycles to stores
202.
Accountant salaries