Ex. 16.5 a.
$ 12,000
Manufacturing costs assigned to production:
For the Year Ended December 31, 2011
NuTronics, Inc.
Schedule of the Cost of Finished Goods Manufactured
Work in process, January 1, 2011 ………………………………….
Ex. 16.6 c.
(continued) $ 1,550,000
Operating income for the month of January:
Revenues ………………………………………………………
…
Ex. 16.9
a.
Work in process inventory, January 1 60,000$
Add: Manufacturing costs assigned to production:
Direct materials used (1) 70,000$
Direct labor 21,000
Manufacturing overhead 18,000 109,000
b.
Sales 250,000$
(1) The company’s cost of goods sold figure is based
on the following flow of costs through production
to finished goods:
Income Statement
For the Year Ended December 31
ANTHONY COMPANY
Schedule of the Cost of Finished Goods Manufactured
For the Year Ended December 31
ANTHONY COMPANY
Ex. 16.10
a.
Work in process inventory, January 1 79,000$
Add: Manufacturing costs assigned to production:
Direct materials used (1)125,000$
Direct labor 22,000
(1) Computation of direct materials used:
b.
Sales 280,000$
Less: Cost of goods sold (1)209,000
Gross profit on sales 71,000$
Less: Selling and administrative expenses 30,000
Net income 41,000$
(1) The company’s cost of goods sold figure is based
on the following flow of costs through production
to finished goods:
Income Statement
For the Year Ended December 31
RANDOLPH COMPANY
Schedule of the Cost of Finished Goods Manufactured
For the Year Ended December 31
RANDOLPH COMPANY
Ex. 16.11
Ex. 16.12 a. $250,000 + $120,000 + $145,000 = $515,000
$18,000 + $250,000 + $120,000 + $145,000
Ex. 16.13 a. Product, direct material
b. Period
Ex. 16.14 a. Syrup, sugar, CO2, bottles and cans, caps
b.
General Electric’s actions reflect the three design principles of management
accounting systems. First, the CFO identified products where decision making had
Answers will vary, for example; labor to unload direct materials, labor for mixing
SOLUTIONS TO PROBLEMS SET A
20 Minutes, Easy PROBLEM 16.1A
AQUA-MARINE
a. Computations of amounts:
(1) Average per-unit manufacturing cost:
Cost of finished goods manufactured 728,000$
(2) Ending materials inventory:
Direct materials purchased 225,000$
Less: Direct materials used in production 216,000
Materials inventory, end of year 9,000$
(3) Cost of goods sold:
Number of units sold 100
PROBLEM 16.1A
AQUA-MARINE (concluded)
b.
775,000$
Materials inventory 9,000$
(cost of goods sold)
The disposition of the $775,000 in manufacturing costs “incurred” during the year is
summarized below:
Comments on deducting manufacturing costs from revenue:
No—the entire $775,000 in manufacturing costs is not deducted from the revenue of the
current year. Manufacturing costs are product costs, not period costs. Product costs are
Total manufacturing costs “incurred” during the year
Less: Amounts representing inventory at year-end:
15 Minutes, Easy PROBLEM 16.2A
ROAD WARRIOR CORPORATION
a. Total manufacturing costs assigned to work in process:
Direct materials used 750,000$
Direct labor applied to production 800,000
Manufacturing overhead 1,200,000
Total manufacturing costs assigned to work in process 2,750,000$
d. Gross profit on sales:
(Alternative computation of ending inventory of finished goods:
Finished units on hand, 2, times unit cost, $55,000, equals $110,000)
15 Minutes, Easy PROBLEM 16.3A
SUPERIOR LOCKS, INC.
a. Purchases of direct materials 269,000$
b. Cost of direct materials used:
Materials inventory, beginning of year 13,000$
Add: Purchases of direct materials 269,000
Cost of materials available for use 282,000$
Less: Materials inventory, end of year 17,000
20 Minutes, Easy PROBLEM 16.4A
DOUBLE BAR CORPORATION
a. Purchases of direct materials 355,000$
d. Direct labor costs assigned to production 210,000$
e. Direct materials used (part b)358,000$
Direct labor costs assigned to production 210,000
Manufacturing overhead assigned to production 390,000
Total manufacturing costs charged to work in process 958,000$