William P. Worth
ACCC 560 EXERCISES & PROBLEMS
January 13, 2012
EX 1-5Ikerd Company is a manufacturer of personal computers. Various costs and expenses associated with its operations are as follows. The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead and (d) period costs. | |
1. | Property taxes on the factory building. D |
2. | Production superintendents' salaries. B |
3. | Memory boards and chips used in assembling computers. A |
4. | Depreciation on the factory equipment. D |
5. | Salaries for assembly-line quality control inspectors. B |
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Materials used in product$100,000 Advertising expense$45,000
Depreciation on plant60,000Property taxes on plant14,000
Property taxes on store 7,500Delivery expense 21,000
Labor costs of assembly-line work 110,000 Sales commission 35,000
Factory supplies used 23,000Salaries paid to sales clerks 50,000
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 $55,600 at December 31.
a.Compute cost of goods manufactured.
Material used 100000
Labor cost 110000
Depreciation on plant 60000
Property tax on plant 14000
Property tax on store 7500
Factory supplies used 23000
Total manufacturing cost 314500
Add opening WIP 12000
Less Closing WIP -15500
Cost of gods manufactured 311000
b.Compute cost of good sold.
Cost of goods manufactured 311000
Add Opening FG 60000
Less Closing FG -55600
Cost of goods sold 315400
EX 1-8Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product | $120,000 | Advertising expense | $45,000 |
Depreciation on plant | 60,000 | Property taxes on plant | 14,000 |
Property taxes on store | 7,500 | Delivery expense | 21,000 |
Labor costs of assembly-line worker | 110,000 | Sales commissions | 35,000 |
Factory supplies used | 23,000 | Salaries paid to sales clerks | 50,000 |
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 $45,600 at December 31.Instructions (a) | Compute cost of goods manufactured. |
(b) | Compute cost of goods sold. |
Cepeda Corporation has the following cost records for June 2014.
Indirect factory labor | $ 4,500 | Factory utilities | $ 400 |
Direct materials used | 20,000 | Depreciation, factory equipment | 1,400 |
Work in process, 6/1/14 | 3,000 | Direct labor | 40,000 |
Work in process, 6/30/14 | 3,800 | Maintenance, factory equipment | 1,800 |
Finished goods, 6/1/14 | 5,000 | Indirect materials | 2,200 |
Finished goods, 6/30/14 | 7,500 | Factory manager's salary | 3,000 |
(a) | Prepare a cost of goods manufactured schedule for June 2014. |
(b) | Prepare an income statement through gross profit for June 2014 assuming sales revenue is $92,100 |
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Cepeda Corporation has the following cost records for June 2012. Indirect factory labor $4,500 Direct materials used 20,000 Work in process, 6/1/12 3,000 Work in process, 6/30/12 3,800 Finished goods, 6/1/12 5,000 Finished...