Managerial Accounting 1B Ch14
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Managerial Accounting 1B
Financial and Managerial Accounting
Chapter 14
1.
Exercise 14-8 Cost of goods sold computation L.O. P1
| Century |
| New Homes |
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Beginning inventory |
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Merchandise |
| $ | 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.) |
| 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, |
| Canyon |
| Rossings |
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Beginning finished goods inventory |
| $ | 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 "$" sign in your response.) |
| Canyon Company | Rossings Company |
Cost of goods manufactured |
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rev: 03-04-11
3.
Exercise 14-9 Part 2
2. | Compute cost of goods sold for both Canyon Company and Rossings Company. (Omit the "$" sign in your response.) |
| 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 |
| 39,000 |
Goods in process inventory, Dec. 31, 2010 |
| 55,900 |
Finished goods inventory, Dec. 31, 2010 |
| 64,750 |
Raw materials purchases |
| 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 |
| 44,700 |
Goods in process inventory, Dec. 31, 2011 |
| 43,500 |
Finished goods inventory, Dec. 31, 2011 |
| 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 |
| 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 |
| 44,700 |
Goods in process inventory, Dec. 31, 2011 |
| 43,500 |
Finished goods inventory, Dec. 31, 2011 |
| 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 |
| Direct labor | $ | 677,480 |
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Depreciation expense—Office equipment |
| 9,250 |
| Income taxes expense |
| 235,725 |
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Depreciation expense—Selling equipment |
| 10,600 |
| Indirect labor |
| 58,875 |
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Depreciation expense—Factory equipment |
| 35,550 |
| Miscellaneous production costs |
| 10,425 |
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Factory supervision |
| 104,600 |
| Office salaries expense |
| 65,000 |
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Factory supplies used |
| 9,350 |
| Raw materials purchases |
| 927,000 |
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Factory utilities |
| 35,000 |
| Rent expense—Office space |
| 24,000 |
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Inventories |
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| Rent expense—Selling space |
| 28,100 |
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Raw materials, December 31, 2010 |
| 168,850 |
| Rent expense—Factory building |
| 78,800 |
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Raw materials, December 31, 2011 |
| 184,000 |
| Maintenance expense—Factory equipment |
| 37,400 |
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Goods in process, December 31, 2010 |
| 17,700 |
| Sales |
| 4,527,000 |
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Goods in process, December 31, 2011 |
| 21,380 |
| Sales discounts |
| 64,500 |
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Finished goods, December 31, 2010 |
| 169,350 |
| 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.) |
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