Sales salaries. Factory repairs. Advertising Office supplies used $ $

Transcription

1 E19-4, Determine the total amount of various types of costs. Drew Company reports the following costs and expenses in May. Factory utilities $ $ Depreciation on factory equipment Depreciation on delivery trucks Indirect factory labor Indirect materials Factory manager s salary Instructions (a) From the information, determine the total amount of: manufacturing overhead. Factory utilities Depreciation on factory equipment Indirect factory labor Indirect materials Factory manager s salary Property taxes on factory building Factory repairs $ (b) From the information, determine the total amount of:product costs. (c) From the information, determine the total amount of: period costs. $ $ Product costs $ Depreciation on delivery trucks $3.800 Sales salaries Repairs to office equipment Advertising Office supplies used Period costs $ Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising Office supplies used ch19.xlsx, Solution E19-4, Page 1 of 11 Page(s), :43

2 E19-12, Prepare a cost of goods manufactured schedule and a partial income statement. Troy Corporation has the following cost records for June Indirect factory labor $4.500 Factory utilities $ Depreciation, factory equipment Work in process, 6/1/12 Work in process, 6/30/12 Finished goods, 6/1/12 Finished goods, 6/30/ Maintenance, factory equipment Indirect materials Factory manager s salary Instructions (a) Prepare a cost of goods manufactured schedule for June Work in process, June 1 Indirect labor Factory manager s salary Indirect materials Maintenance, factory equipment Depreciation, factory equipment Factory utilities Total manufacturing overhead Total manufacturing costs Total cost of work in process Less: Work in process, June 30 TROY CORPORATION For the Month Ended June 30, 2012 $ (b) Prepare an income statement through gross profit for June 2012 assuming net sales are $ $ $ $ TROY CORPORATION Income Statement (Partial) For the Month Ended June 30, 2012 Net sales $ Finished goods, 6/1/12 $ Cost of goods available for sale Finished goods, 6/30/ Gross profit $ ch19.xlsx, Solution E19-12, Page 2 of 11 Page(s), :43

3 E19-16, Prepare a cost of goods manufactured schedule, and present the ending inventories of the balance sheet. An analysis of the accounts of Zuniga Manufacturing reveals the following manufacturing cost data for the month ended June 30, Inventories: Beginning: Ending: Raw materials $9.000 $ Work in process Finished goods Costs incurred: Raw materials purchases $ The specific overhead costs were: Indirect labor $5.500 Machinery repairs $1.800 Factory insurance Factory utilities Machinery depreciation Miscellaneous factory costs Instructions: (a) Prepare the cost of goods manufactured schedule for the month ended June 30, ZUNIGA MANUFACTURING For the Month Ended June 30, 2012 Work in process inventory, June 1 Direct materials Raw materials inventory, June 1 Raw materials purchases Total raw materials available for use Less: Raw materials inventory, June 30 Indirect labor Factory insurance Machinery depreciation Factory utilities Machinery repairs Miscellaneous factory costs Total manufacturing overhead Total manufacturing costs Total cost of work in process Less: Work in process inventory, June 30 $ $ $ $ (b) Show the presentation of the ending inventories on the June 30, 2012, balance sheet. Current assets Inventories Finished goods Work in process Raw materials ZUNIGA MANUFACTURING (Partial) Balance Sheet June 30, 2012 $ $ ch19.xlsx, Solution E19-16, Page 3 of 11 Page(s), :43

4 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 Blumbey Manufacturing Company for the fiscal year ended June 30, Raw Materials Inventory 07/01/11 $ Factory Machinery Depreciation $ Raw Materials Inventory 06/30/ Factory Utilities Finished Goods Inventory 07/01/ Office Utilities Expense Finished Goods Inventory 06/30/ Sales Work in Process 07/01/ Sale Discounts Work in Process 06/30/ Plant Manager's Salary Factory Property Taxes Indirect Labor Factory Repairs Account Receivable Raw Materials Purchases Factory Insurance Cash Instructions: (a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) Work in Process 07/01/11 Direct materials Raw Materials Inventory 07/01/11 Raw Materials Purchases Total raw materials available for use Less: Raw Materials Inventory 06/30/12 Plant Manager's Salary Factory Utilities Indirect Labor Factory Machinery Depreciation Factory Property Taxes Factory Insurance Factory Repairs Total manufacturing overhead Total manufacturing costs Total cost of work in process Less: Work in Process 06/30/12 BLUMBEY MANUFACTURING COMPANY For the Year Ended June 30, 2012 $ $ $ $ ch19.xlsx, Solution P19-4A, Page 4 of 11 Page(s), :43

5 (b) Prepare an income statement through gross profit. BLUMBEY MANUFACTURING COMPANY (Partial) Income Statement For the Year Ended June 30, 2012 Sales revenues Sales Less: Sale Discounts Net sales Finished Goods Inventory 07/01/11 (see schedule) Cost of goods available for sale Finished Goods Inventory 06/30/12 Gross profit $ $ $ (c) Prepare the current assets section of the balance sheet at June 30, BLUMBEY MANUFACTURING COMPANY (Partial) Balance Sheet June 30, 2012 Assets Current assets Cash Account Receivable Inventories Finished Goods Inventory 06/30/12 Work in Process 06/30/12 Raw Materials Inventory 06/30/12 Total current assets $ $ $ ch19.xlsx, Solution P19-4A, Page 5 of 11 Page(s), :43

6 P19-5A, Prepare a cost of goods manufactured schedule and a correct income statement. Dibene Company is a manufacturer of computers. Its controller resigned in October An inexperienced assistant accountant has prepared the following income statement for the month of October DIBENE COMPANY Income Statement For the Month Ended October 31, 2012 Sales (net) $ Less: Operating expenses Raw materials purchases $ cost Advertising expense Selling and administrative salaries Rent on factory facilities Depreciation on sales equipment Depreciation on factory equipment Indirect labor cost Utilities expense Insurance expense Net loss ($23.000) Prior to October 2012, the company had been profitable every month. The company s president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials $ $ Work in process Finished goods Only 70% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. ch19.xlsx, Solution P19-5A, Page 6 of 11 Page(s), :43

7 Instructions Accounting Principles (a) Prepare a schedule of cost of goods manufactured for October Work in process, October 1 Direct materials Raw materials inventory, October 1 Raw materials purchases Total raw materials available for use Less: Raw materials inventory, October 31 Factory facility rent Depreciation on factory equipment Indirect labor Factory utilities* Factory insurance** DIBENE COMPANY For the Month Ended October 31, 2012 $ $ Total manufacturing overhead Total manufacturing costs Total cost of work in process Less: Work in process, October 31 $ $ (b) Prepare a correct income statement for October * Allocation of utilities - $12,000 70% = $8,400 ** Allocation of insurance - $8,000 60% = $4,800 DIBENE COMPANY Income Statement For the Month Ended October 31, 2012 Sales (net) Finished goods inventory, October 1 Cost of goods available for sale Less: Finished goods inventory, October 31 Gross profit Operating expenses Advertising expense Selling and administrative salaries Depreciation expense Utilities expense* Insurance expense** Total operating expenses Net income $ $ $ * Allocation of utilities - $12,000 30% = $3,600 ** Allocation of insurance - $8,000 40% = $3,200 ch19.xlsx, Solution P19-5A, Page 7 of 11 Page(s), :43

8 P19-4B, 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 Goodman Manufacturing Company for the year ended December 31, Raw Materials Inventory 01/01/12 $ Factory Machinery Depreciation $7.700 Raw Materials Inventory 12/31/ Factory Utilities Finished Goods Inventory 01/01/ Office Utilities Expense Finished Goods Inventory 12/31/ Sales Work in Process 01/01/ Sale Discounts Work in Process 12/31/ Plant Manager's Salary Factory Property Taxes Indirect Labor Factory Repairs 800 Account Receivable Raw Materials Purchases Factory Insurance Cash Instructions: (a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) GOODMAN MANUFACTURING COMPANY For the Year Ended December 31, 2012 Work in Process 01/01/12 Direct materials Raw Materials Inventory 01/01/12 $ Raw Materials Purchases Total raw materials available for use Less: Raw Materials Inventory 12/31/ $ Plant Manager's Salary Indirect Labor Factory Utilities Factory Machinery Depreciation Factory Insurance Factory Property Taxes Factory Repairs Total manufacturing overhead Total manufacturing costs Total cost of work in process Less: Work in Process 12/31/12 $ $ ch19.xlsx, Solution P19-4B, Page 8 of 11 Page(s), :43

9 (b) Prepare an income statement through gross profit. GOODMAN MANUFACTURING COMPANY (Partial) Income Statement For the Year Ended December 31, 2012 Sales revenues Sales $ Less: Sale Discounts Net sales Finished Goods Inventory 01/01/12 (see schedule) Cost of goods available for sale Finished Goods Inventory 12/31/12 Gross profit $ $ (c)prepare the current assets section of the balance sheet at December 31. GOODMAN MANUFACTURING COMPANY (Partial) Balance Sheet December 31, 2012 Assets Current assets Cash Account Receivable Inventories Finished Goods Inventory 12/31/12 Work in Process 12/31/12 Raw Materials Inventory 12/31/12 Total current assets $ $ $ ch19.xlsx, Solution P19-4B, Page 9 of 11 Page(s), :43

10 P19-5B, Prepare a cost of goods manufactured schedule and a correct income statement. Quintana Company is a manufacturer of toys. Its controller resigned in August An inexperienced assistant accountant has prepared the following income statement for the month of August QUINTANA COMPANY Income Statement For the Month Ended August 31, 2012 Sales (net) $ Less: Operating expenses Raw materials purchases $ cost Advertising expense Selling and administrative salaries Rent on factory facilities Depreciation on sales equipment Depreciation on factory equipment Indirect labor cost Utilities expense Insurance expense Net loss ($30.000) Prior to August 2012 the company had been profitable every month. The company s president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. 1. Inventory balances at the beginning and end of August were: August 1 August 31 Raw materials $ $ Work in process Finished goods Only 50% of the utilities expense and 70% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. ch19.xlsx, Solution P19-5B, Page 10 of 11 Page(s), :43

11 Instructions Accounting Principles (a) Prepare a schedule of cost of goods manufactured for August QUINTANA COMPANY For the Month Ended August 31, 2012 Work in process, August 1 $ Direct materials Raw materials inventory, August 1 $ Raw materials purchases Total raw materials available for use Less: Raw materials inventory, August $ Factory facility rent $ Depreciation on factory equipment Indirect labor Factory utilities* Factory insurance** Total manufacturing overhead Total manufacturing costs Total cost of work in process Less: Work in process, August $ (b) Prepare a correct income statement for August * Allocation of utilities - $10,000 50% = $5,000 ** Allocation of insurance - $5,000 70% = $3,500 QUINTANA COMPANY Income Statement For the Month Ended August 31, 2012 Sales (net) $ Finished goods inventory, August 1 $ Cost of goods available for sale Less: Finished goods inventory, August Gross profit Operating expenses Advertising expense Selling and administrative salaries Depreciation expense Utilities expense* Insurance expense** Total operating expenses Net income ($4.500) * Allocation of utilities - $10,000 50% = $5,000 ** Allocation of insurance - $5,000 30% = $1,500 ch19.xlsx, Solution P19-5B, Page 11 of 11 Page(s), :43