Managerial Accounting 1B Ch14

Managerial Accounting 1B Ch14

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Financial and Managerial Accounting

 

Chapter 14

 

 

 

1.

 

 

 

 

 

Exercise 14-8 Cost of goods sold computation L.O. P1

 

	Century Merchandising					New Homes Manufacturing
Beginning inventory
Merchandise		$	250,000
Finished goods						$	500,000
Cost of purchases			460,000
Cost of goods manufactured							886,000
Ending inventory
Merchandise			150,000
Finished goods							144,000

 

 

 

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
New Homes Manufacturing

 

 

 

 

 

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 Company					Rossings Company
Beginning finished goods inventory		$	14,000			$	18,450
Beginning goods in process inventory			16,500				21,950
Beginning raw materials inventory			9,250				11,000
Rental cost on factory equipment			29,000				24,750
Direct labor			21,000				37,000
Ending finished goods inventory			19,650				15,300
Ending goods in process inventory			24,000				18,000
Ending raw materials inventory			7,300				9,200
Factory utilities			11,000				14,000
Factory supplies used			10,200				5,200
General and administrative expenses			23,000				45,000
Indirect labor			3,250				9,660
Repairs—Factory equipment			6,780				3,500
Raw materials purchases			35,000				54,000
Sales salaries			52,000				48,000

 

 

 

Section Break	Difficulty: Hard
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.

 

 

 

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

 

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

 

 

 

4.

 

 

 

 

 

Exercise 14-11 Manufacturing statement preparation L.O. P2

 

Given the following selected account balances of Randa Company.

 

 

 

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

 

 

 

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:

 

 

 

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

 

 

 

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.

 

 

 

Advertising expense	$	30,750		Direct labor	$	677,480
Depreciation expense—Office equipment		9,250		Income taxes expense		235,725
Depreciation expense—Selling equipment		10,600		Indirect labor		58,875
Depreciation expense—Factory equipment		35,550		Miscellaneous production costs		10,425
Factory supervision		104,600		Office salaries expense		65,000
Factory supplies used		9,350		Raw materials purchases		927,000
Factory utilities		35,000		Rent expense—Office space		24,000
Inventories				Rent expense—Selling space		28,100
Raw materials, December 31, 2010		168,850		Rent expense—Factory building		78,800
Raw materials, December 31, 2011		184,000		Maintenance expense—Factory equipment		37,400
Goods in process, December 31, 2010		17,700		Sales		4,527,000
Goods in process, December 31, 2011		21,380		Sales discounts		64,500
Finished goods, December 31, 2010		169,350		Sales salaries expense		394,560
Finished goods, December 31, 2011		138,490

 

 

 

Section Break

Problem 14-8A Manufacturing and income statements; inventory analysis L.O. P2

 

 

 

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.)