Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Exercise 14-12 (25 minutes)
Account
Balance
Sheet
Income
Statement
Schedule of
COGM
Overhead
Report
Accounts receivable.............................
Computer supplies used in office .......
Beginning finished goods inventory
Beginning work in process
inventory ............................................
Cash.......................................................
Depreciation expense—Factory
building...............................................
Depreciation expense—Office
building...............................................
Direct labor ...........................................
Ending work in process inventory ......
Ending raw materials inventory ..........
Factory maintenance wages ................
Income taxes .........................................
Insurance on factory building .............
Property taxes on factory building .....
Raw materials purchases ....................
Sales ......................................................
Exercise 14-13 (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
Less raw materials inventory, December 31, 2015 ............
42,700
Direct materials used ...........................................................
$169,900
Direct labor ...............................................................................
225,000
Factory overhead
Factory computer supplies used ................................
17,840
Indirect labor .........................................................................
47,000
Repairs—Factory equipment ...............................................
5,250
Rent cost of factory building ...............................................
57,000
Total factory overhead costs ..............................................
127,090
Total manufacturing costs .....................................................
521,990
Work in process inventory, December 31, 2014 ...................
53,900
Total cost of work in process ................................................
575,890
Less work in process inventory, December 31, 2015 .............
41,500
Cost of goods manufactured ..................................................
$534,390
Exercise 14-14 (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
Cost of goods manufactured ...............................................
534,390
Cost of goods available for sale ..........................................
597,140
Less finished goods inventory, December 31, 2015 .............
67,300
Cost of goods sold ...............................................................
529,840
Gross profit ..............................................................................
720,160
Operating expenses
Advertising expense .............................................................
94,000
General and administrative expenses ................................
129,300
Total operating expenses.....................................................
223,300
Operating income ................................................................
$ 496,860
Exercise 14-15 (25 minutes)
Beck Manufacturing
Schedule of Cost of Goods Manufactured
For Year Ended December 31, 2015
Direct materials .....................................................................................
$ 46,500
Direct labor ...........................................................................................
27,500
Factory overhead costs ........................................................................
55,000
Total manufacturing costs ................................................................
129,000
Add work in process, December 31, 2014...........................................
14,000
Total cost of work in process ...............................................................
143,000
Less work in process, December 31, 2015 .........................................
12,000
Cost of goods manufactured ...............................................................
$131,000
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
Goods available for sale ................................................................
147,000
Less finished goods inventory, December 31, 2015 ........................
18,000
Cost of goods sold..............................................................................
$129,000
Exercise 14-16 (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 14-17 (10 minutes)
1. C 4. A
2. A 5. C
3. C 6. B
Problem 14-1A (45 minutes)
Problem 14-1A (continued)
Part 3
If 1,200 drum sets are produced, we would expect the cost of the plastic for
the casings to increase to $20,400 (1,200 drum sets x $17/set), but the cost
Problem 14-2A (30 minutes)
Costs
Product
Cost
Dir.
Mtls.
Dir.
Labor
Over-
head
Period
Cost
Selling
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
Factory supplies used
X
X
Factory utilities
X
X
Direct labor
X
X
Indirect labor
X
X
Misc. production costs
X
X
Office salaries expense
X
X
Raw materials purchases
X
X
Rent expense-Office space
X
X
Rent expense-Selling space
X
X
Rent expense-Factory bldg.
X
X
Maint. expense-Factory equip.
X
X
Sales salaries expense
X
X
Problem 14-3A (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
Raw materials available for use ................................
1,091,850
Less raw materials inventory, December 31, 2015 .....
182,000
Direct materials used..................................................
$ 909,850
Direct labor .....................................................................
675,480
Factory overhead
Depreciation expense—Factory equipment .............
33,550
Factory supervision ....................................................
102,600
Factory supplies used ................................................
7,350
Factory utilities ...........................................................
33,000
Indirect labor ...............................................................
56,875
Miscellaneous production costs ...............................
8,425
Rent expense—Factory building ...............................
76,800
Maintenance expense—Factory equipment .............
35,400
Total factory overhead costs .....................................
354,000
Total manufacturing costs ............................................
1,939,330
Work in process inventory, December 31, 2014 .........
15,700
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
