Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 18 - Managerial Accounting Concepts and Principles
Exercise 18-12 (25 minutes)
Account
Balance
Sheet
Income
Statement
Schedule of
COGM
Overhead
Report
Cash........................................................
Depreciation expense—Factory
building................................................
Depreciation expense—Office
building................................................
Insurance on factory building..............
Property taxes on factory building......
Raw materials purchases.....................
Sales.......................................................
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
Direct materials used ........................................................... $169,900
18-1011
Education.
Chapter 18 - Managerial Accounting Concepts and Principles
Direct labor............................................................................... 225,000
Factory overhead
Rent cost of factory building............................................... 57,000
Total factory overhead costs .............................................. 127,090
Total manufacturing costs ..................................................... 521,990
18-1012
Chapter 18 - Managerial Accounting Concepts and Principles
Exercise 18-14 (20 minutes)
DELRAY MFG.
Income Statement
For Year Ended December 31, 2015
Sales.......................................................................................... $1,250,000
Cost of goods sold
Less finished goods inventory, December 31, 2015............. 67,300
Cost of goods sold................................................................ 529,840
Gross profit............................................................................... 720,160
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
Less work in process, December 31, 2015.......................................... 12,000
Cost of goods manufactured................................................................ $131,000
18-1013
Education.
Chapter 18 - Managerial Accounting Concepts and Principles
Beck Manufacturing
Partial Income Statement
For Year Ended December 31, 2015
Cost of goods sold
Finished goods inventory, December 31, 2014................................$ 16,000
Cost of goods manufactured............................................................. 131,000
Chapter 18 - Managerial Accounting Concepts and Principles
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
18-1015
Chapter 18 - Managerial Accounting Concepts and Principles
Exercise 18-17 (10 minutes)
PROBLEM SET A
Problem 18-1A (45 minutes)
Part 1 Cost classification and amounts
Costs Variable Fixed Product Period
1. Plastic for casing—$17,000.................. $17,000 $17,000
staff—$10,000.................................. 10,000 10,000
7. Upper mgmt. salaries—$125,000.......... 125,000 125,000
8. Annual flat fee paid for factory
maintenance service—$10,000........ 10,000 10,000
Part 2
TrueBeat
Calculation of Manufacturing Cost per Drum Set
For Year Ended December 31, 2015
Item
Total cost
(at 1,000 units)
Per unit cost
(Total / 1,000)
Variable production costs
18-1016
Chapter 18 - Managerial Accounting Concepts and Principles
Total variable production costs 125,000 125
Fixed production costs
Property taxes on factory 5,000 5
18-1017
Chapter 18 - Managerial Accounting Concepts and Principles
Problem 18-1A (continued)
Part 3
If 1,200 drum sets are produced, we would expect the cost of the plastic for
Part 4
If 1,200 drum sets are produced, we would expect the cost of the property
cost will decrease as production increases.
Problem 18-2A (30 minutes)
Costs Product
Cost
Dir.
Mtls.
Dir.
Labo
r
Over-
head
Period
Cost Sellin
g
Gen. &
Admin
Advertising expense X X
Depr. expense-Office equip. X X
Depr. expense-Selling equip. X X
Depr. expense-Factory equip. X X
Factory supervision X X
18-1018
Chapter 18 - Managerial Accounting Concepts and Principles
Rent expense-Selling space X X
Problem 18-3A (75 minutes)
Part 1
LEONE COMPANY
Schedule of Cost of Goods Manufactured
For Year Ended December 31, 2015
Direct materials
Raw materials inventory, December 31, 2014..........$ 166,850
Raw materials purchases........................................... 925,000
Factory overhead
Depreciation expense—Factory equipment............. 33,550
Factory supervision.................................................... 102,600
Factory supplies used................................................ 7,350
Factory utilities............................................................ 33,000
Total cost of work in process........................................ 1,955,030
Less work in process inventory, December 31, 2015 19,380
Cost of goods manufactured........................................ $1,935,650
18-1019
18-1020
