E19-4 Determine the total amount of various types of costs
Knight Company reports the following costs and expenses in May.
Factory utilities $15,500 Direct labor $69,100
Depreciation on factory equipment 12,650 Sales salaries 46,400
Depreciation on delivery truck 3,800 Property taxes on factory building 2,500
Indirect factory labor 48,900 Repairs to office equipment 1,300
Indirect materials 80,800 Factory repairs 2,000
Direct materials used 137,600 Advertising 15,000
Factory manager’s salary 8,000 Office supplies used 2,640
Instructions
From the information, determine the total amount of:
(a) Manufacturing overhead.
(b) Product costs.
(c ) Period costs.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .
(a) Determine the total amount of manufacturing overhead.
Factory utilities Value
Depreciation on factory equipment Value
Indirect factory labor Value
Indirect materials Value
Factory manager’s salary Value
Property taxes on factory building Value
Factory repairs Value
Manufacturing overhead ?
(b) Determine the total amount of product costs.
Direct materials Value
Direct labor Value
Manufacturing overhead Value
Product costs ?
(c ) Determine the total amount of period costs.
Depreciation on delivery trucks Value
Sales salaries Value
Repair to office equipment Value
Advertising Value
Office supplies used Value
Period costs ?
After you have complete E19-4, consider the additional question.
1. Assume that the following items changed: factory manager’s salary $16,000; direct materials
$151,000; property taxes $36,000; and, sales salaries $48,000. What impact do these changes
have on manufacturing overhead, product and period costs?
E19-4 Solution
(a) Determine the total amount of manufacturing overhead.
Factory utilities $15,500
Depreciation on factory equipment 12,650
Indirect factory labor 48,900
(b) Determine the total amount of product costs.
Direct materials $137,600
Direct labor 69,100
(c) Determine the total amount of period costs.
Depreciation on delivery trucks $3,800
Sales salaries 46,400
E19-4 Solution to additional question
1. Assume that the following items changed: factory manager’s salary $16,000; direct materials
$151,000; property taxes $36,000; and, sales salaries $48,000. What impact do these changes
have on manufacturing overhead, product and period costs?
(a) Determine the total amount of manufacturing overhead.
Factory utilities $15,500
Depreciation on factory equipment 12,650
Indirect factory labor 48,900
(b) Determine the total amount of product costs.
Direct materials $151,000
Direct labor 69,100
(c) Determine the total amount of period costs.
Depreciation on delivery trucks 3,800
Sales salaries 48,000
E19-12 Prepare a cost of goods manufactured schedule and a partial income statement
Cepeda Corporation has the following cost records for June 2017.
Indirect factory labor $4,500 Factory utilities $400
Direct materials used 20,000 Depreciation, factory equipment 1,400
Work in process, 6/1/17 3,000 Direct labor 40,000
Work in process, 6/30/17 3,800 Maintenance, factory equipment 1,800
Finished goods, 6/1/17 5,000 Indirect materials 2,200
Finished goods, 6/30/17 7,500 Factory manager’s salary 3,000
Instructions
(a) Prepare a cost of goods manufactured schedule for June 2017.
(b) Prepare an income statement through gross profit for June 2017 assuming sales revenue is
$92,100
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .
(a)
Work in process, June 1 Value
Direct materials used Value
Direct labor Value
Manufacturing overhead
Indirect labor Value
Factory manager’s salary Value
Indirect materials Value
Maintenance, factory equipment Value
Depreciation, factory equipment Value
Factory utilities Value
Total manufacturing overhead ?
Total manufacturing costs ?
Total cost of work in process ?
Less: Work in process, June 30 Value
Cost of goods manufactured ?
(b)
Sales Revenue Value
Cost of goods sold
Finished goods inventory, June 1 Value
Cost of goods manufactured [from (a) above] Value
Cost of goods available for sale ?
Less: Finished goods inventory, June 30 Value
Cost of goods sold ?
Gross profit ?
For the Month Ended June 30, 2017
CEPEDA CORPORATION
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
CEPEDA CORPORATION
Income Statement (partial)
After you have completed E19-12, consider the following additional question.
1. Assume the following balances changed: beginning work in process $4,200, direct labor
$39,000, and indirect materials $2,700. Show the impact of these changes on the cost
of goods manufactured schedule.
E19-12 Solution
(a)
Work in process, June 1 $3,000
Manufacturing overhead
Indirect labor $4,500
Factory manager’s salary 3,000
Indirect materials 2,200
(b)
Sales Revenue $92,100
Cost of goods sold
For the Month Ended June 30, 2017
CEPEDA CORPORATION
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
CEPEDA CORPORATION
Income Statement (partial)
E19-12 Solution to additional question
1. Assume the following balances changed: beginning work in process $4,200, direct labor
$39,000, and indirect materials $2,700. Show the impact of these changes on the cost
of goods manufactured schedule.
Work in process, June 1 $4,200
Direct materials used $20,000
Direct labor 39,000
Manufacturing overhead
Indirect labor $2,700
Factory manager’s salary 3,000
CEPEDA CORPORATION
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
E19-16 Prepare a cost of goods manufactured schedule and present the ending inventories on the balance sheet
An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended
June 30, 2017.
Inventories Beginning Ending
Raw materials $9,000 $13,100
Work in process 5,000 7,000
Finished goods 9,000 8,000
Costs incurred: raw materials purchases $54,000, direct labor $47,000, manufacturing overhead $19,900. The specific
overhead costs were: indirect labor $5,500, factory insurance, $4,000, machinery depreciation $4,000, machinery
repairs $1,800, factory utilities $3,100, miscellaneous factory costs $1,500. Assume that all raw materials used were
direct materials.
Instructions
(a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2017.
(b) Show the presentation of the ending inventories on the June 30, 2017 balance sheet.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .
(a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2017.
Work in process inventory, June 1 Value
Direct materials
Raw materials inventory, June 1 Value
Raw materials purchases Value
Total raw materials available for use ?
Less: Raw materials inventory, June 30 Value
Direct materials used
?
Direct labor Value
Manufacturing overhead
Indirect labor Value
Factory insurance Value
Machinery depreciation Value
Factory utilities Value
Machinery repairs Value
Miscellaneous factory costs Value
Total manufacturing overhead ?
Total manufacturing costs ?
Total cost of work in process ?
Less: Work in process, June 30 Value
Cost of goods manufactured ?
(b) Show the presentation of the ending inventories on the June 30, 2017 balance sheet.
Current assets
Inventories
Finished goods Value
Work in process Value
Raw materials Value ?
June 30, 2017
ROBERTS COMPANY
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
ROBERTS COMPANY
(Partial) Balance Sheet
After you have completed E19-16, consider the additional question.
1. Assume that the inventory balances changed as follows: beginning raw materials $12,000,
ending work in process $6,750 and ending finished goods $10,000. Show the impact of these
changes on the cost of goods manufactured schedule and balance sheet.
E19-16 Solution
(a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2017.
Work in process inventory, June 1 $5,000
Direct materials
Raw materials inventory, June 1 $9,000
Raw materials purchases
Cost of goods manufactured
54,000
Manufacturing overhead
Indirect labor $5,500
Factory insurance 4,000
(b) Show the presentation of the ending inventories on the June 30, 2017 balance sheet.
Current assets
Inventories
June 30, 2017
ROBERTS COMPANY
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
ROBERTS COMPANY
(Partial) Balance Sheet
E19-16 Solution to additional question
1. Assume that the inventory balances changed as follows: beginning raw materials $12,000,
ending work in process $6,750 and ending finished goods $10,000. Show the impact of these
changes on the cost of goods manufactured schedule and balance sheet.
(a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2017.
Work in process inventory, June 1 $5,000
Direct materials
Raw materials inventory, June 1 $12,000
Raw materials purchases 54,000
Machinery depreciation 4,000
Factory utilities 3,100
(b)
Show the presentation of the ending inventories on the June 30, 2017 balance sheet.
Current assets
Inventories
Finished goods $10,000
June 30, 2017
ROBERTS COMPANY
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
ROBERTS COMPANY
(Partial) Balance Sheet
Total raw materials available for use
P19-4A Prepare a cost of goods manufactured schedule, a partial income statement, and a partial balance sheet
The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2017.
Raw Materials Inventory,7/1/16 $48,000 $16,000
Raw Materials Inventory, 6/30/17 39,600 Factory Utilities 27,600
Finished Goods Inventory, 7/1/16 96,000 Office Utilities Expense 8,650
Finished Goods Inventory, 6/30/17 75,900 Sales Revenue 534,000
Work in Process Inventory, 7/1/16 19,800 Sales Discounts 4,200
Work in Process Inventory, 6/30/17 18,600 Plant Manager’s Salary 58,000
Direct Labor 139,250 Factory Property Taxes 9,600
Indirect Labor 24,460 Factory Repairs 1,400
Accounts Receivable 27,000 Raw Materials Purchases 96,400
Factory Insurance 4,600 Cash 32,000
Instructions
(a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)
(b) Prepare an income statement through gross profit.
(c) Prepare the current assets section of the balance sheet at June 30, 2017.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .
(a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)
Work in process inventory, July 1, 2016 Value
Direct materials
Raw materials inventory, July 1, 2016 Value
Raw materials purchases Value
Total raw materials available for use ?
Less: Raw materials inventory, June 30, 2017 Value
Direct materials used ?
Direct labor Value
Manufacturing overhead
Plant manager’s salary Value
Factory utilities Value
Indirect labor Value
Factory machinery depreciation Value
Factory property taxes Value
Factory insurance Value
Factory repairs Value
Total manufacturing overhead ?
Total manufacturing costs ?
Total cost of work in process ?
Less: Work in process, June 30 Value
Cost of goods manufactured ?
(b) Prepare an income statement through gross profit.
Sales Revenues
Sales Revenue Value
Less: Sales discounts Value
Factory Machinery Depreciation
CLARKSON COMPANY
Cost of Goods Manufactured Schedule
For the Year Ended June 30, 2017
CLARKSON COMPANY
(Partial) Income Statement
For the Year Ended June 30, 2017
Net Sales ?
Cost of goods sold
Finished goods inventory, July 1, 2016 Value
Cost of goods manufactured Value
Cost of goods available for sale ?
Less: Finished goods inventory, June 30, 2017 Value
Cost of goods sold ?
Gross profit ?
(c) Prepare the current assets section of the balance sheet at June 30, 2017.
Current assets
Cash Value
Accounts Receivable Value
Inventories
Finished goods Value
Work in process Value
Raw materials Value ?
Total current assets ?
After you have completed P19-4A, consider the additional question.
1. Assume that in preparing the cost of goods manufactured schedule, several errors were made. Raw materials purchases,
sales revenue and factory depreciation should have been $106,400, $584,000 and $18,000 respectively. Show the impact
of these changes on the cost of goods manufactured schedule, income statement and balance sheet.
Assets
CLARKSON COMPANY
(Partial) Balance Sheet
June 30, 2017
P19-4A Solution
(a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)
Work in process inventory, July 1, 2016 $19,800
Direct materials
Raw materials inventory, July 1, 2016 $48,000
Raw materials purchases 96,400
Manufacturing overhead
Plant manager’s salary $58,000
Factory utilities 27,600
Indirect labor 24,460
Factory machinery depreciation 16,000
(b) Prepare an income statement through gross profit.
Sales Revenues
Sales Revenue $534,000
Less: Sales discounts 4,200
(c ) Prepare the current assets section of the balance sheet at June 30, 2017.
CLARKSON COMPANY
Cost of Goods Manufactured Schedule
For the Year Ended June 30, 2017
CLARKSON COMPANY
(Partial) Balance Sheet
CLARKSON COMPANY
(Partial) Income Statement
For the Year Ended June 30, 2017