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Exercise 18-10 (20 minutes)
Garcon
Company
Pepper
Company
1. PRIME COSTS
Direct materials
Beginning raw materials inventory................. $ 7,250 $ 9,000
2. CONVERSION COSTS
Direct labor..........................................................
Factory overhead
$19,000
$35,000
Rental cost on factory equipment................... 27,000 22,750
Exercise 18-11 (20 minutes)
Merchandising Business
UNIMART
Partial Income Statement
For Year Ended December 31, 2015
Cost of goods sold
Merchandise inventory, December 31, 2014............................ $ 275,000
Exercise 18-11 (concluded)
Manufacturing Business
PRECISION MANUFACTURING
Partial Income Statement
For Year Ended December 31, 2015
Cost of goods sold
Finished goods inventory, December 31, 2014.................... $ 450,000
Exercise 18-12 (25 minutes)
Account
Balance
Sheet
Income
Statement
Schedule of
COGM
Overhead
Report
Accounts receivable.............................
Computer supplies used in office.......
Exercise 18-13 (25 minutes)
DELRAY MFG.
Schedule of Cost of Goods Manufactured
For Year Ended December 31, 2015
Direct materials
Raw materials inventory, December 31, 2014....................$ 37,000
Raw materials purchases .................................................. 175,600
Raw materials available for use .........................................212,600
Exercise 18-14 (20 minutes)
DELRAY MFG.
Income Statement
For Year Ended December 31, 2015
Sales....................................................................................... $1,250,000
Cost of goods sold
Finished goods inventory, December 31, 2014..................$ 62,750
Exercise 18-15 (25 minutes)
Beck Manufacturing
Schedule of Cost of Goods Manufactured
For Year Ended December 31, 2015
Direct materials.................................................................................... $ 46,500
Direct labor .......................................................................................... 27,500
Beck Manufacturing
Partial Income Statement
For Year Ended December 31, 2015
Cost of goods sold
Finished goods inventory, December 31, 2014...............................$ 16,000
Cost of goods sold
...........................................................................
$129,000
Exercise 18-16 (15 minutes)
Direct materials used
in production
$502,500
Factory overhead
used in production
$750,000
Ending raw
materials inventory
$175,000
Beginning raw
materials inventory
$145,500
Raw materials available
for use in production
$677,500
Raw materials
purchases
$532,000
Production
Activity
Sales
Activity
Materials
Activity
Direct labor used
in production
$350,000
Ending work in
process inventory
$93,500
Total work in
process
$1,687,000
Beginning work in
process inventory
$84,500
Ending finished
goods inventory
$139,950
Finished goods sold
$1,600,300
Beginning finished
goods inventory
$146,750
Finished goods
available for sale
$1,740,250
Finished goods
manufactured
$1,593,500
Exercise 18-17 (10 minutes)
1. C 4. A
