EXERCISE 1-14 (Continued)
AIKMAN COMPANY
Income Statement (Partial)
For the Year Ended December 31, 2014
(b) Sales revenue ………………………………… $910,000
Cost of goods sold
Finished goods, 1/1 …………………… $ 27,000
Cost of goods manufactured …….. 537,300
AIKMAN COMPANY
(Partial) Balance Sheet
December 31, 2014
(c) Current assets
Inventories
Finished goods …………………………..………….. $21,000
account (merchandise inventory) instead of three.
EXERCISE 1-15
1. (a) 9. (a)
2. (a) 10. (a), (b)
3. (a), (c) 11. (b)
4. (b) 12. (b)
EXERCISE 1-16
(a) ROBERTS COMPANY
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2014
Work in process inventory, June 1 …………….. $ 5,000
Direct materials
Raw materials inventory, June 1 ………… $ 9,000
Raw materials purchases …………………… 54,000
Manufacturing overhead
Indirect labor …………………………………….. $5,500
Factory insurance ……………………………… 4,000
Machinery depreciation……………………… 4,000
Factory utilities …………………………………. 3,100
(b) ROBERTS COMPANY
(Partial) Balance Sheet
June 30, 2014
Current assets
Inventories
Finished goods ……………………………………. $ 8,000
EXERCISE 1-17
(a) Raw Materials account: (5,000 – 4,650) X $10 = $3,500
Work in Process account: (4,600 X 10%) X $10 = $4,600
Raw materials $ 3,500
Work in process 4,600
Finished goods 12,420
(b) To: Chief Accountant
From: Student
Subject: Statement Presentation of Accounts
Two accounts will appear in the income statement. Cost of Goods Sold
will be deducted from net sales in determining gross profit. Selling ex-
penses will be shown under operating expenses and will be deducted
The other accounts associated with the head lamps are inventory ac-
counts which contain end-of-period balances. Thus, they will be reported
EXERCISE 1-18
(a) 3. Balanced scorecard
(b) 4. Value chain
SOLUTIONS TO PROBLEMS
1-24 Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only)
(a)
Product Costs
Cost Item
Materials
Labor
Overhead
Costs
Rent on factory equipment
Insurance on factory building
Raw materials
Utility costs for factory
Supplies for general office
Wages for assembly line workers
Depreciation on office equipment
Miscellaneous materials
Factory manager’s salary
Property taxes on factory building
Advertising for helmets
Sales commissions
Depreciation on factory building
$75,000
000,000
$75,000
$53,000
000,000
$53,000
$ 9,000
1,500
900
1,100
5,700
400
1,500
$20,100
$ 300
800
14,000
10,000
000,000
$25,100
(b) Total production costs
Direct materials $ 75,000
Direct labor 53,000
Manufacturing overhead 20,100
Total production cost $148,100
Production cost per helmet = $148,100/10,000 = $14.81.
PROBLEM 1-1A
PROBLEM 1-2A
Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solutions Manual (For Instructor Use Only) 1-25
(a)
Product Costs
Cost Item
Direct
Materials
Direct
Labor
Manufacturing
Overhead
Period
Costs
Raw materials (1)
Wages for workers (2)
Rent on equipment
Indirect materials (3)
Factory supervisor’s salary
Janitorial costs
Advertising
Depreciation on factory building (4)
Property taxes on factory building (5)
$111,000
00_0,000
$111,000
$90,000
000,000
$90,000
$ 4,900
7,500
3,000
1,300
650
750
$18,100
$9,500
00,000
$9,500
(1) $74 X 1,500 = $111,000.
(2) $12 X 5 X 1,500 = $90,000.
(3) $5 X 1,500 = $7,500.
(4) $7,800/12 = $650.
(5) $9,000/12 = $750.
(b) Total production costs
Direct materials $111,000
Direct labor 90,000
Manufacturing overhead 18,100
Total production cost $219,100
Production cost per system = $219,100/1,500 = $146.07. (rounded)
PROBLEM 1-3A
(a) Case 1
A = $9,600 + $5,000 + $8,000 = $22,600
$22,600 + $1,000 – B = $17,000
B = $22,600 + $1,000 – $17,000 = $6,600
Case 2
G + $8,000 + $4,000 = $16,000
G = $16,000 – $8,000 – $4,000 = $4,000
J = $22,000 + $3,300 = $25,300
PROBLEM 1-3A (Continued)
(b) CASE 1
Cost of Goods Manufactured Schedule
Work in process, beginning …………………………... $ 1,000
Direct materials …………………………………………….. $9,600
Direct labor …………………………………………………… 5,000
(c) CASE 1
Income Statement
Sales revenue ………………………………………………. $24,500
Less: Sales discounts ………………………………….. 2,500
Net sales ………………………………………………………. $22,000
Cost of goods sold
Finished goods inventory, beginning ………. 3,000
Cost of goods manufactured…………………… 17,000
CASE 1
(Partial) Balance Sheet
Current assets
Cash ……………………………………………………… $ 4,000
Receivables (net) ……………………………………. 15,000
Inventories
Finished goods ……………………………….. $3,400
PROBLEM 1-4A
(a) CLARKSON COMPANY
Cost of Goods Manufactured Schedule
For the Year Ended June 30, 2014
Work in process, July 1, 2013 ………… $ 19,800
Direct materials
Raw materials inventory,
July 1, 2013 ………………………… $ 48,000
Raw materials purchases ……….. 96,400
Manufacturing overhead
Plant manager’s salary …………… 58,000
Factory utilities ………………………. 27,600
Indirect labor …………………………. 24,460
Total manufacturing
overhead ……………………… 141,660
Total manufacturing costs …………….. 385,710
PROBLEM 1-4A (Continued)
(b) CLARKSON COMPANY
(Partial) Income Statement
For the Year Ended June 30, 2014
Sales revenues
Sales revenue ……………………………………… $534,000
Less: Sales discounts…………………………. 4,200
Net sales …………………………………………….. $529,800
Cost of goods sold
(c) CLARKSON COMPANY
(Partial) Balance Sheet
June 30, 2014
Assets
Current assets
Cash …………………………………………………… $ 32,000
Accounts receivable ……………………………. 27,000
Inventories
Finished goods …………………………….. $75,900
PROBLEM 1-5A
(a) PHILLIPS COMPANY
Cost of Goods Manufactured Schedule
For the Month Ended October 31, 2014
Work in process, October 1 ………….. $ 16,000
Direct materials
Raw materials inventory,
October 1 ………………………….. $ 18,000
Raw materials
Manufacturing overhead
Factory facility rent ……………….. 60,000
Depreciation on factory
equipment …………………………. 31,000
Indirect labor ………………………… 28,000