Managerial Accounting

Instructions

Determine the total amount of (a) delivery service (product) costs and (b) period costs

Solution

Work in process inventory was $12,000 at January 1 and $15,500 at December 31. finished goods inventory was $60,000 at January 1 and $45,000 at December 31.

Instructions

1. Compute cost of goods manufactured.
2. Compute cost of goods sold.

Solution

Instructions

Complete the cost of goods manufactured schedule for Hobbit Co

Solution

Instructions

Indicate the missing amount for each letter (a) through (i).

Solution

Instructions

1. Indicate the missing amount for each letter.
2. Prepare a condensed cost of goods manufactured schedule for situation (1) for the year ended December 31, 2020.

Solution

Instructions

1. Prepare a cost of goods manufactured schedule for June 2020.
2. Prepare an income statement through gross profit for June 2017 assuming sales revenue is $92,100.

Solution

Keisha Tombert , the bookkeeper for Washington Consulting, a political consulting firm, has recently completed a managerial accounting course at her local college. One of the topics covered in the course was the cost of goods manufactured schedule. Keisha wondered if such a schedule could be prepared for her firm. She realized that, as a service-oriented company, it would have no work in process inventory to consider.

Listed below are the costs her firm incurred for the month ended August 31, 2021

Instructions

1. Prepare a schedule of cost of contract services performed (similar to a cost of goods manufactured schedule) for the month.
2. For those costs not included in (a), explain how they would be classified and reported in the financial statements.

Solution

Instructions

1. Compute cost of goods manufactured
2. Prepare an income statement through gross profit
3. Show the presentation of the ending inventories on the December 31, 2020, balance sheet.

Solution

(a) Cost of goods manufactured schedule
(b) Income Statement
(c) Balance Sheet

The following items are found in the ledger and accompanying data

1. Direct Labor
2. Raw materials inventory, 1/1
3. Work in process inventory, 12/31
4. Finished goods inventory, 1/1
5. Indirect Labor
6. Depreciation on factory machinery
7. Work in process, 1/1
8. Finished goods inventory, 12/31
9. Factory maintenance salaries
10. Cost of goods manfactured
11. Depreciation on delivery equipment
12. Cost of goods available for sale
13. Direct materials used
14. Heat and electricity for factory
15. Repairs to roof of factory building
16. Cost of raw materials purchases

Instructions

List the items (1)-(16), For each item, indicate by using the appropriate letter or letters, the schedule and/or financial statement(s) in which the item will appear.

Solution

Costs incurred: raw materials purchases $54,000, direct labor $47,000, manufacturing overhead $19,900. The specific overhead costs were: indirect labor $5,500, factory insurance $4,000, machinery depreciation $4,000, machinery repairs $1,800, factory utilities $3,100, and miscellaneous factory costs $1,500. Assume that all raw materials used were direct materials

Instructions

1. Prepare a cost of goods manufactured schedule for the month ended June 30, 2020.
2. Show the presentation of the ending inventories on the June 30, 2020, balance sheet.

Solution