Managerial Accounting 1B
Financial and Managerial Accounting
Chapter 14
1.
Exercise 14-8 Cost of goods sold computation L.O. P1
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Century |
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New Homes |
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Beginning inventory |
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Merchandise |
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$ |
250,000 |
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Finished goods |
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$ |
500,000 |
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Cost of purchases |
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460,000 |
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Cost of goods manufactured |
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886,000 |
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Ending inventory |
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Merchandise |
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150,000 |
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Finished goods |
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144,000 |
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Compute cost of goods sold for each of these two companies for the year ended December 31, 2011. (Omit the “$” sign in your response.) |
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Cost of goods sold |
Century Merchandising |
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New Homes Manufacturing |
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Exercise 14-9 Cost of goods manufactured and cost of goods sold computation L.O. P1, P2
[The following information applies to the questions displayed below.]
Using the following data, |
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Canyon |
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Rossings |
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Beginning finished goods inventory |
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$ |
14,000 |
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$ |
18,450 |
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Beginning goods in process inventory |
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16,500 |
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21,950 |
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Beginning raw materials inventory |
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9,250 |
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11,000 |
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Rental cost on factory equipment |
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29,000 |
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24,750 |
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Direct labor |
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21,000 |
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37,000 |
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Ending finished goods inventory |
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19,650 |
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15,300 |
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Ending goods in process inventory |
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24,000 |
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18,000 |
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Ending raw materials inventory |
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7,300 |
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9,200 |
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Factory utilities |
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11,000 |
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14,000 |
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Factory supplies used |
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10,200 |
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5,200 |
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General and administrative expenses |
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23,000 |
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45,000 |
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Indirect labor |
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3,250 |
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9,660 |
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Repairs—Factory equipment |
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6,780 |
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3,500 |
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Raw materials purchases |
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35,000 |
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54,000 |
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Sales salaries |
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52,000 |
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48,000 |
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Section Break |
Difficulty: Hard |
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Exercise 14-9 Cost of goods manufactured and cost of goods sold computation L.O. P1, P2 |
Learning Objective: 14-P2 Prepare a manufacturing statement and explain its purpose and links to financial statements. |
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2.
Exercise 14-9 Part 1
1. |
Compute the cost of goods manufactured for both Canyon Company and Rossings Company. (Omit the “$” sign in your response.) |
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Canyon Company |
Rossings Company |
Cost of goods manufactured |
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rev: 03-04-11
3.
Exercise 14-9 Part 2
2. |
Compute cost of goods sold for both Canyon Company and Rossings Company. (Omit the “$” sign in your response.) |
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Canyon Company |
Rossings Company |
Cost of goods sold |
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4.
Exercise 14-11 Manufacturing statement preparation L.O. P2
Given the following selected account balances of Randa Company. |
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Sales |
$ |
1,252,000 |
Raw materials inventory, Dec. 31, 2010 |
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39,000 |
Goods in process inventory, Dec. 31, 2010 |
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55,900 |
Finished goods inventory, Dec. 31, 2010 |
|
64,750 |
Raw materials purchases |
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177,600 |
Direct labor |
|
227,000 |
Factory computer supplies used |
|
19,840 |
Indirect labor |
|
49,000 |
Repairs—Factory equipment |
|
7,250 |
Rent cost of factory building |
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59,000 |
Advertising expense |
|
96,000 |
General and administrative expenses |
|
131,300 |
Raw materials inventory, Dec. 31, 2011 |
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44,700 |
Goods in process inventory, Dec. 31, 2011 |
|
43,500 |
Finished goods inventory, Dec. 31, 2011 |
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69,300 |
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Prepare its manufacturing statement for the year ended on December 31, 2011. (Input all amounts as positive values. Omit the “$” sign in your response.) |
5.
Exercise 14-12 Income statement preparation L.O. P2
Following are the selected account balances of Randa Company: |
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|
|
Sales |
$ |
1,252,000 |
Raw materials inventory, Dec. 31, 2010 |
|
39,000 |
Goods in process inventory, Dec. 31, 2010 |
|
55,900 |
Finished goods inventory, Dec. 31, 2010 |
|
64,750 |
Raw materials purchases |
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177,600 |
Direct labor |
|
227,000 |
Factory computer supplies used |
|
19,840 |
Indirect labor |
|
49,000 |
Repairs—Factory equipment |
|
7,250 |
Rent cost of factory building |
|
59,000 |
Advertising expense |
|
96,000 |
General and administrative expenses |
|
131,300 |
Raw materials inventory, Dec. 31, 2011 |
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44,700 |
Goods in process inventory, Dec. 31, 2011 |
|
43,500 |
Finished goods inventory, Dec. 31, 2011 |
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69,300 |
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Prepare an income statement for Randa Company (a manufacturer). Assume that its cost of goods manufactured is $546,390. (Input all amounts as positive values. Omit the “$” sign in your response.) |
Problem 14-8A Manufacturing and income statements; inventory analysis L.O. P2
[The following information applies to the questions displayed below.]
The following calendar year-end information is taken from the December 31, 2011, adjusted trial balance and other records of Plaza Company. |
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Advertising expense |
$ |
30,750 |
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Direct labor |
$ |
677,480 |
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Depreciation expense—Office equipment |
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9,250 |
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Income taxes expense |
|
235,725 |
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Depreciation expense—Selling equipment |
|
10,600 |
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Indirect labor |
|
58,875 |
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Depreciation expense—Factory equipment |
|
35,550 |
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Miscellaneous production costs |
|
10,425 |
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Factory supervision |
|
104,600 |
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Office salaries expense |
|
65,000 |
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Factory supplies used |
|
9,350 |
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Raw materials purchases |
|
927,000 |
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Factory utilities |
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35,000 |
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Rent expense—Office space |
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24,000 |
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Inventories |
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Rent expense—Selling space |
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28,100 |
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Raw materials, December 31, 2010 |
|
168,850 |
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Rent expense—Factory building |
|
78,800 |
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Raw materials, December 31, 2011 |
|
184,000 |
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Maintenance expense—Factory equipment |
|
37,400 |
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Goods in process, December 31, 2010 |
|
17,700 |
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Sales |
|
4,527,000 |
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Goods in process, December 31, 2011 |
|
21,380 |
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Sales discounts |
|
64,500 |
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Finished goods, December 31, 2010 |
|
169,350 |
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Sales salaries expense |
|
394,560 |
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Finished goods, December 31, 2011 |
|
138,490 |
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Section Break |
Problem 14-8A Manufacturing and income statements; inventory analysis L.O. P2 |
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6.
Problem 14-8A Part-1
Required: |
1. |
Prepare the company’s 2011 manufacturing statement. (Input all amounts as positive values. Omit the “$” sign in your response.) |
7.
Problem 14-8A Part-2
2. |
Prepare the company’s 2011 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. (Input all amounts as positive values. Omit the “$” sign in your response.) |