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1065
Exercise 18-11 (concluded)
Manufacturing Business
PRECISION MANUFACTURING
Partial Income Statement
For Year Ended December 31, 2017
Cost of goods sold
Finished goods inventory, December 31, 2016....................
$ 450,000
Beginning Inventory 450,000
Finished Goods Inventory
Exercise 18-12 (25 minutes)
Account
Balance
Sheet
Income
Statement
Schedule of
COGM
Overhead
Report
Accounts receivable ............................
✓
1067
Exercise 18-13 (25 minutes)
DELRAY MFG.
Schedule of Cost of Goods Manufactured
For Year Ended December 31, 2017
Direct materials
Raw materials inventory, December 31, 2016 ....................
$ 37,000
Raw materials purchases ....................................................
175,600
1068
Exercise 18-14 (20 minutes)
DELRAY MFG.
Income Statement
For Year Ended December 31, 2017
Sales ..........................................................................................
$1,250,000
Cost of goods sold
Finished goods inventory, December 31, 2016..................
$ 62,750
1069
Exercise 18-15 (25 minutes)
Beck Manufacturing
Schedule of Cost of Goods Manufactured
For Year Ended December 31, 2017
Direct materials .....................................................................................
$ 46,500
Direct labor ...........................................................................................
27,500
Beck Manufacturing
Partial Income Statement
For Year Ended December 31, 2017
Cost of goods sold
1070
Exercise 18-16 (15 minutes)
Factory overhead
Raw materials
Production
Activity
Materials
Direct labor used
1071
Exercise 18-17 (10 minutes)
Exercise 18-18 (10 minutes)
1. Sales revenue
Profit
Exercise 18-19 (10 minutes)
1. Sales revenue
Profit
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 18
1072
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
Part 2
TrueBeat
Calculation of Manufacturing Cost per Drum Set
For Year Ended December 31, 2017
Item
Total cost
(at 1,000 units)
Per unit cost
(Total / 1,000)
Variable production costs
Plastic for casing
$ 17,000
$ 17
1073
Problem 18-1A (continued)
Part 3
Part 4
If 1,200 drum sets are produced, we would expect the cost of the property
1074
Problem 18-2A (30 minutes)
Costs
Product
Cost
Dir.
Mtls.
Dir.
Labor
Over-
head
Period
Cost
Selling
Gen. &
Admin
Advertising expense
X
X
1075
Problem 18-3A (75 minutes)
Part 1
LEONE COMPANY
Schedule of Cost of Goods Manufactured
For Year Ended December 31, 2017
Direct materials
Raw materials inventory, December 31, 2016 ..........
$ 166,850
1076
Problem 18-3A (Continued)
Part 2
LEONE COMPANY
Income Statement
For Year Ended December 31, 2017
Sales ................................................................................
$4,462,500
Cost of goods sold
Operating expenses
Selling expenses
Advertising expense ..................................................
28,750
1077
Problem 18-3A (Continued)
Part 3
Raw
Materials
Finished
Goods
Cost of raw materials used .....................................................
$909,850
Discussion: The inventory turnover ratio for the raw materials inventory is
significantly lower than the turnover ratio for finished goods.
1078
Problem 18-4A (40 minutes)
Part 1
Units and dollar amounts of raw materials inventory in heels
Units
Cost per
Unit
Dollars
Beginning inventory, December 31, 2016 1,200 $8 $9,600
Part 2 Analysis Component
Topics of discussion for this memorandum include:
Problem 18-5A (40 minutes)
Part 1
MERCHANDISING BUSINESS
MUSIC WORLD RETAIL
Partial Income Statement
For Year Ended December 31, 2017
Cost of goods sold
MANUFACTURING BUSINESS
WAVE-BOARD MFG.
Partial Income Statement
For Year Ended December 31, 2017
Cost of goods sold
Finished goods inventory, December 31, 2016............................
$ 500,000
Part 2
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
The answers will vary but should include:
• The Merchandise Inventory account on December 31 for Music World and
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 18
1080
PROBLEM SET B
Problem 18-1B (45 minutes)
Part 1 Cost classification and amounts
Cost by Behavior
Cost by Function
Costs
Variable
Fixed
Product
Period
1.
Plastic for BDs—$1,500 ......................
$ 1,500
$ 1,500
1081
Problem 18-1B (continued)
Part 2
Maxwell
Calculation of Manufacturing Cost per BD
For Year Ended December 31, 2017
Item
Total cost
(at 15,000 units)
Per unit cost *
Variable production costs
Plastic for BDs
$ 1,500
$ 0.10
Part 3
If 10,000 BDs are produced, we would expect the cost of the plastic for the BDs to
