Accounting -S
Santosh_2102
wEEK4.docxRunning Head: ACCOUNTING 1
ACCOUNTING 8
Title: ACCOUNTING
Student’s Name:
Institution:
Exercise 3-23
1. Manufacturer of swimming pool chemicals- Process costing
2. Manufacturer of custom hot tubs and spas- Job posting
3. Architectural firm- Job posting
4. Manufacturer of ceramic tile- Process costing
5. Producer of yogurt- Process costing
6. Manufacturer of custom tool sheds- Job posting
7. Manufacturer of papers clips- Process costing
8. Engineering consulting firm- Job posting
9. Manufacturer of balloons- Process costing
10. Manufacturer of custom emergency rescue vehicles- Process costing
Exercise 3-27
Compute the following
1. The company’s prime cost for January
2. The total manufacturing cost for January
3. The cost of goods manufactured for January
4. The cost of goods sold for January
5. The balance in the manufacturing overhead account on January 31. Debit or credit?
Prime cost= direct labor cost + direct material cost
Total manufacturing cost= Prime cost+ Manufacturing overhead cost
Cost of goods manufactured= Total manufacturing cost + Beginning WIP Inventory- Ending WIP Inventory
Cost of goods sold= Cost of goods manufactured + Beginning Finished Goods Inventory- Ending Finished Goods Inventory
Direct materials used for manufacturing of finished goods
|
Raw materials inventory, January 1 |
$133,000 |
|
Add: Raw Materials purchase during January |
$190,000 |
|
Total raw materials inventory available for consumption |
$323,000 |
|
Less: Raw materials inventory, January 31 |
$124,000 |
|
Raw materials used or consumed during January |
$199,000 |
The prime cost, total manufacturing cost, the cost of goods manufactured for January
|
Direct raw materials cost (working Note 1) |
|
$199,000 |
|
Direct labor Cost |
|
$300,000 |
|
Prime cost for January |
|
$499,000 |
|
Applied manufactured overhead (60% of direct labor cost) |
|
$180,000 |
|
Total manufacturing costs for January |
|
$679,000 |
|
Add: Work in process inventory, January 1 |
|
$233,000 |
|
Less: Work in process inventory, January 31 |
|
$251,000 |
|
Cost of goods manufactured for January |
|
$661,000 |
Cost of goods sold for January
|
Finished goods inventory, January 1 |
$125,000 |
|
Add: Cost of goods manufactured for January |
$661,000 |
|
Total cost of goods available for sale |
$786,000 |
|
Less: Finished goods inventory, January 31 |
$117,000 |
|
Cost of goods sold for January |
$669,000 |
The balance in the manufacturing overhead account on January 31
Applied manufacturing overhead cost= 60% of the direct labor cost= 60% × $300,000= $180,000 (Credit)
Actual manufacturing overhead cost= $170,000 (Debit)
Balance in the manufacturing overhead account on January 31= $10,000 (Credit)
Problem 3-42
Twisto Pretzel Company
Schedule of cost of Goods Manufactured
For the year of 20×1
|
Particulars |
Amount $ |
Amount $ |
|
Direct Materials: |
|
|
|
Raw material inventory on 31.12. ×0 |
10,100 |
|
|
Add: Purchase of raw material |
39,000 |
|
|
Raw material available for use |
49,100 |
|
|
Deduct: Raw material inventory 31.12. ×1 |
11,000 |
|
|
Raw material used |
|
38,100 |
|
Direct labour |
|
79,000 |
|
|
|
|
|
Manufacturing overhead: |
|
|
|
Insurance on factory and equipment |
3,600 |
|
|
Indirect material used |
4,900 |
|
|
Depreciation on factory equipment |
2,100 |
|
|
Property taxes of factory |
2,400 |
|
|
Utilities for factory |
6,000 |
|
|
Indirect labor |
29,000 |
|
|
Depreciation on factory building |
3,800 |
|
|
Rental for warehouse to store raw material |
3,100 |
|
|
Total actual manufacturing overhead |
54,900 |
|
|
Add: over applied overhead |
3,100 |
|
|
Overheads applied to work in process |
|
58,000 |
|
Total manufacturing |
|
175,000 |
|
Add: Work in process inventory on 31.12. ×0 |
|
8,100 |
|
|
|
|
|
Subtotal |
|
183,200 |
|
Deduct: work in process inventory on 31.12. ×1 |
|
8,300 |
|
Cost of goods manufactured |
|
174,900 |
Twisto Pretzel Company
Schedule of cost of goods sold
For the year 20×1
|
Particulars |
Amounts $ |
|
Finished goods inventory on 31.12. ×0 |
14,000 |
|
Add: cost of goods manufactured |
174,000 |
|
Costs of goods available for sale |
188,900 |
|
Deduct: finished goods inventory on 31.12. ×1 |
15,400 |
|
Cost of goods sold |
173,500 |
|
Deduct: Over applied manufacturing overhead |
3,100 |
|
Cost of goods sold(adjust for overapplied overhead) |
170,400 |
Twisto Pretzel Company
Income statement
For the year ended December 31, 20×1
|
Particulars |
Amount $ |
Amount $ |
|
Sales revenue |
|
205,800 |
|
Deduct: cost of goods sold |
|
170,400 |
|
Gross Margin |
|
35,400 |
|
Deduct: Selling and administrative overheads |
|
|
|
Selling and administrative overheads |
13,800 |
|
|
Utilities for selling and administrative offices |
2,500 |
|
|
Other selling and administrative expenses |
4,000 |
|
|
Depreciation on card used by sales personnel |
1,200 |
|
|
Rental of space for company president’s office |
1,700 |
|
|
|
|
23,200 |
|
Income before taxes |
|
12,200 |
|
Deduct: income tax expenses |
|
5,100 |
|
Net Income |
|
7,100 |
Problem 3-50
The cost of goods manufactured= (the opening work in process+ Total manufacturing costs-closing work in process)
Huron Corporation
Schedule of cost of goods manufactured
For the year ended December 31,20×2
|
Particulars |
Amount $ |
Amounts $ |
|
Direct material |
|
|
|
Raw material inventory, January 1 |
89,000 |
|
|
Add: Purchase of raw material |
731,000 |
|
|
Raw material available |
820,000 |
|
|
Less: raw material inventory, December 31 |
59,000 |
|
|
Raw material used |
|
761,000 |
|
Direct labor |
|
474,000 |
|
Manufacturing overhead: |
|
|
|
Indirect material |
45,000 |
|
|
Indirect labor |
150,000 |
|
|
Depreciation of factory building |
125,000 |
|
|
Depreciation on factory equipment |
60,000 |
|
|
Insurance of factory equipment |
40,000 |
|
|
Utilities for factory |
70,000 |
|
|
Property taxes on factory |
90,000 |
|
|
Total manufacturing overhead |
|
580,000 |
|
Less: under applied manufacturing overhead ($580,000-$577,500) |
|
2,500 |
|
Total manufacturing costs |
|
1,812,500 |
|
Add: work in progress inventory, January 1 |
|
0 |
|
Less: work in progress inventory, December |
|
40,000 |
|
Cost of goods manufactured |
|
1,772,500 |
Huron Corporation
Schedule of cost goods sold
For the year ended December 31, 20×2
|
Particular |
Amounts |
|
Finished goods inventory, January 1 |
35,000 |
|
Add: cost of goods manufactured |
1,772,500 |
|
Cost of goods available for sale |
1,807,500 |
|
Less: finished goods inventory, December 31 |
40,000 |
|
Cost of goods sold |
1,767,500 |
|
Add: under applied manufacturing overhead ($580,000-$577,500) |
2,500 |
|
Cost of goods sold (adjusted for under applied overhead) |
1,770,000 |
Huron Corporation
Income statement
For the year ended December 31, 20×2
|
Particulars |
Amounts $ |
|
sales revenue |
2,105,000 |
|
Less: cost of goods sold |
1,770,000 |
|
Gross margin |
335,000 |
|
Selling and administrative expenses |
269,000 |
|
Income before taxes |
66,000 |
|
Income tax Expense |
25,000 |
|
Net income |
41,000 |
Huron Corporation
Schedule of cost of goods manufactured
For the year ended December 31,20×2
|
Particulars |
Amount $ |
Amounts $ |
|
Direct material |
|
|
|
Raw material inventory, January 1 |
89,000 |
|
|
Add: Purchase of raw material |
731,000 |
|
|
Raw material available |
820,000 |
|
|
Less: raw material inventory, December 31 |
59,000 |
|
|
Raw material used |
|
761,000 |
|
Direct labor |
|
474,000 |
|
Manufacturing overhead: |
|
|
|
Indirect material |
45,000 |
|
|
Indirect labor |
150,000 |
|
|
Depreciation of factory building |
125,000 |
|
|
Depreciation on factory equipment |
60,000 |
|
|
Insurance of factory equipment |
40,000 |
|
|
Utilities for factory |
78,000 |
|
|
Property taxes on factory |
90,000 |
|
|
Total manufacturing overhead |
|
588,000 |
|
Less: under applied manufacturing overhead ($588,000-$580,000) |
|
8,000 |
|
Total manufacturing costs |
|
1,815,000 |
|
Add: work in progress inventory, January 1 |
|
0 |
|
Less: work in progress inventory, December |
|
40,000 |
|
Cost of goods manufactured |
|
1,775,000 |
Huron Corporation
Schedule of cost goods sold
For the year ended December 31, 20×2
|
Particular |
Amounts |
|
Finished goods inventory, January 1 |
35,000 |
|
Add: cost of goods manufactured |
1,775,000 |
|
Cost of goods available for sale |
1,810,000 |
|
Less: finished goods inventory, December 31 |
40,000 |
|
Cost of goods sold |
1,770,000 |
|
Add: under applied manufacturing overhead ($580,000-$577,500) |
8,000 |
|
Cost of goods sold (adjusted for under applied overhead) |
1,762,000 |
Huron Corporation
Income statement
For the year ended December 31, 20×2
|
Particulars |
Amounts $ |
|
sales revenue |
2,115,000 |
|
Less: cost of goods sold |
1,762,000 |
|
Gross margin |
353,000 |
|
Selling and administrative expenses |
269,000 |
|
Income before taxes |
84,000 |
|
Income tax Expense |
25,000 |
|
Net income |
59,000 |
References
Hundal, J., Kiwala, S., Feng, Y. Y., Liu, C. J., Govindan, R., Chapman, W. C., ... & Griffith, M. (2019). Accounting for proximal variants improves neoantigen prediction. Nature genetics, 51(1), 175.
Darbon, A., Colombi, D., Valdano, E., Savini, L., Giovannini, A., & Colizza, V. (2019). Disease persistence on temporal contact networks accounting for heterogeneous infectious periods. Royal Society Open Science, 6(1), 181404.
Xing, X., & Yan, S. (2019). Accounting information quality and systematic risk. Review of Quantitative Finance and Accounting, 52(1), 85-103.
Crucini, M. J., & Landry, A. (2019). Accounting for real exchange rates using micro-data. Journal of International Money and Finance, 91, 86-100.
