E19-4, Determine the total amount of various types of costs. Drew Company reports the following costs and expenses in May. Factory utilities $11.500 $69.100 Depreciation on factory equipment Depreciation on delivery trucks Indirect factory labor Indirect materials Factory manager s salary 12.650 3.800 48.900 80.800 137.600 8.000 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 8.000 Property taxes on factory building 2.500 Factory repairs 2.000 $166.350 (b) From the information, determine the total amount of:product costs. (c) From the information, determine the total amount of: period costs. $11.500 12.650 48.900 80.800 $137.600 69.100 166.350 Product costs $373.050 Depreciation on delivery trucks $3.800 Sales salaries 46.400 Repairs to office equipment 1.300 Advertising 18.000 Office supplies used 2.640 Period costs $72.140 Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising Office supplies used 46.400 2.500 1.300 2.000 18.000 2.640 ch19.xlsx, Solution E19-4, Page 1 of 11 Page(s), 17.04.201220:43
E19-12, Prepare a cost of goods manufactured schedule and a partial income statement. Troy Corporation has the following cost records for June 2012. Indirect factory labor $4.500 Factory utilities $400 20.000 Depreciation, factory equipment 1.400 Work in process, 6/1/12 Work in process, 6/30/12 Finished goods, 6/1/12 Finished goods, 6/30/12 3.000 3.800 5.000 7.500 Maintenance, factory equipment Indirect materials Factory manager s salary 30.000 1.800 2.200 3.000 Instructions (a) Prepare a cost of goods manufactured schedule for June 2012. 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 $4.500 3.000 2.200 1.800 1.400 400 (b) Prepare an income statement through gross profit for June 2012 assuming net sales are $20.000 30.000 13.300 $3.000 63.300 66.300 3.800 $62.500 $87.100 TROY CORPORATION Income Statement (Partial) For the Month Ended June 30, 2012 Net sales $87.100 Finished goods, 6/1/12 $5.000 62.500 Cost of goods available for sale 67.500 Finished goods, 6/30/12 7.500 60.000 Gross profit $27.100 ch19.xlsx, Solution E19-12, Page 2 of 11 Page(s), 17.04.201220:43
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, 2012. Inventories: Beginning: Ending: Raw materials $9.000 $13.100 Work in process 5.000 7.000 Finished goods 9.000 6.000 Costs incurred: Raw materials purchases $54.000 57.000 19.900 The specific overhead costs were: Indirect labor $5.500 Machinery repairs $1.800 Factory insurance 4.000 Factory utilities 3.100 Machinery depreciation 4.000 Miscellaneous factory costs 1.500 Instructions: (a) Prepare the cost of goods manufactured schedule for the month ended June 30, 2012. 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 $5.500 4.000 4.000 3.100 1.800 1.500 $9.000 54.000 63.000 13.100 49.900 57.000 19.900 $5.000 126.800 131.800 7.000 $124.800 (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 $6.000 7.000 13.100 $26.100 ch19.xlsx, Solution E19-16, Page 3 of 11 Page(s), 17.04.201220:43
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, 2012. Raw Materials Inventory 07/01/11 $48.000 Factory Machinery Depreciation $16.000 Raw Materials Inventory 06/30/12 39.600 Factory Utilities 27.600 Finished Goods Inventory 07/01/11 96.000 Office Utilities Expense 8.650 Finished Goods Inventory 06/30/12 95.900 Sales 554.000 Work in Process 07/01/11 19.800 Sale Discounts 4.200 Work in Process 06/30/12 18.600 Plant Manager's Salary 29.000 149.250 Factory Property Taxes 9.600 Indirect Labor 24.460 Factory Repairs 1.400 Account 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.) 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 $48.000 96.400 144.400 39.600 29.000 27.600 24.460 16.000 9.600 4.600 1.400 $104.800 149.250 112.660 $19.800 366.710 386.510 18.600 $367.910 ch19.xlsx, Solution P19-4A, Page 4 of 11 Page(s), 17.04.201220:43
(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 $554.000 4.200 96.000 367.910 463.910 95.900 $549.800 368.010 $181.790 (c) Prepare the current assets section of the balance sheet at June 30, 2012. 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 $32.000 27.000 $95.900 18.600 39.600 154.100 $213.100 ch19.xlsx, Solution P19-4A, Page 5 of 11 Page(s), 17.04.201220:43
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 2012. An inexperienced assistant accountant has prepared the following income statement for the month of October 2012. DIBENE COMPANY Income Statement For the Month Ended October 31, 2012 Sales (net) $780.000 Less: Operating expenses Raw materials purchases $264.000 cost 190.000 Advertising expense 90.000 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 75.000 60.000 45.000 31.000 28.000 12.000 8.000 803.000 ($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 $18.000 $34.000 Work in process Finished goods 16.000 14.000 30.000 48.000 2. 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), 17.04.201220:43
Instructions Accounting Principles (a) Prepare a schedule of cost of goods manufactured for October 2012. 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 $18.000 264.000 282.000 34.000 60.000 31.000 28.000 8.400 4.800 $248.000 190.000 Total manufacturing overhead 132.200 Total manufacturing costs Total cost of work in process Less: Work in process, October 31 $16.000 570.200 586.200 14.000 $572.200 (b) Prepare a correct income statement for October 2012. * 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 $ 30.000 572.200 602.200 48.000 90.000 75.000 45.000 3.600 3.200 $780.000 554.200 225.800 216.800 $ 9.000 * 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), 17.04.201220:43
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, 2012. Raw Materials Inventory 01/01/12 $47.000 Factory Machinery Depreciation $7.700 Raw Materials Inventory 12/31/12 44.200 Factory Utilities 12.900 Finished Goods Inventory 01/01/12 85.000 Office Utilities Expense 8.600 Finished Goods Inventory 12/31/12 67.800 Sales 465.000 Work in Process 01/01/12 9.500 Sale Discounts 2.500 Work in Process 12/31/12 8.000 Plant Manager's Salary 40.000 145.100 Factory Property Taxes 6.100 Indirect Labor 18.100 Factory Repairs 800 Account Receivable 27.000 Raw Materials Purchases 62.500 Factory Insurance 7.400 Cash 28.000 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 $ 47.000 Raw Materials Purchases Total raw materials available for use Less: Raw Materials Inventory 12/31/12 62.500 109.500 44.200 $ 65.300 145.100 Plant Manager's Salary Indirect Labor Factory Utilities Factory Machinery Depreciation Factory Insurance Factory Property Taxes Factory Repairs 40.000 18.100 12.900 7.700 7.400 6.100 800 Total manufacturing overhead 93.000 Total manufacturing costs Total cost of work in process Less: Work in Process 12/31/12 $9.500 303.400 312.900 8.000 $304.900 ch19.xlsx, Solution P19-4B, Page 8 of 11 Page(s), 17.04.201220:43
(b) Prepare an income statement through gross profit. GOODMAN MANUFACTURING COMPANY (Partial) Income Statement For the Year Ended December 31, 2012 Sales revenues Sales $465.000 Less: Sale Discounts 2.500 Net sales Finished Goods Inventory 01/01/12 (see schedule) Cost of goods available for sale Finished Goods Inventory 12/31/12 Gross profit 85.000 304.900 389.900 67.800 $462.500 322.100 $140.400 (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 $28.000 27.000 $67.800 8.000 44.200 120.000 $175.000 ch19.xlsx, Solution P19-4B, Page 9 of 11 Page(s), 17.04.201220:43
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 2012. An inexperienced assistant accountant has prepared the following income statement for the month of August 2012. QUINTANA COMPANY Income Statement For the Month Ended August 31, 2012 Sales (net) $675.000 Less: Operating expenses Raw materials purchases $220.000 cost 160.000 Advertising expense 75.000 Selling and administrative salaries 70.000 Rent on factory facilities 60.000 Depreciation on sales equipment 50.000 Depreciation on factory equipment 35.000 Indirect labor cost 20.000 Utilities expense 10.000 Insurance expense 5.000 705.000 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 $19.500 $30.000 Work in process 25.000 21.000 Finished goods 40.000 59.000 2. 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), 17.04.201220:43
Instructions Accounting Principles (a) Prepare a schedule of cost of goods manufactured for August 2012. QUINTANA COMPANY For the Month Ended August 31, 2012 Work in process, August 1 $25.000 Direct materials Raw materials inventory, August 1 $ 19.500 Raw materials purchases 220.000 Total raw materials available for use 239.500 Less: Raw materials inventory, August 31 30.000 $209.500 160.000 Factory facility rent $60.000 Depreciation on factory equipment 35.000 Indirect labor 20.000 Factory utilities* 5.000 Factory insurance** 3.500 Total manufacturing overhead 123.500 Total manufacturing costs 493.000 Total cost of work in process 518.000 Less: Work in process, August 31 21.000 $497.000 (b) Prepare a correct income statement for August 2012. * 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) $675.000 Finished goods inventory, August 1 $ 40.000 497.000 Cost of goods available for sale 537.000 Less: Finished goods inventory, August 31 59.000 478.000 Gross profit 197.000 Operating expenses Advertising expense 75.000 Selling and administrative salaries 70.000 Depreciation expense 50.000 Utilities expense* 5.000 Insurance expense** 1.500 Total operating expenses 201.500 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), 17.04.201220:43