Classic Sound is a start-up company that produces vinyl records for numerous record labels worldwide. The company has two full - time employees working in the production department while the CEO splits her time 80/20% between developing new business and overseeing the production process. Information taken from the accounting records for the first three months of operations is shown below. Beginning raw materials inventory $ 0 Purchases of raw materials 56, 500 Ending raw materials inventory 28, 250 Direct labour 45, 850 Manufacturing overhead 34, 550 Beginning work in process inventory 0 Ending work in process inventory 6,300 Purchase of production equipment 165,000 Rent for production facility 10, 950 Required: 1. Prepare a schedule of cost of goods manufactured for the company for the month.

Classic Sound is a start-up company that produces vinyl records for numerous record labels worldwide. The company has two full - time employees working in the production department while the CEO splits her time 80/20% between developing new business and overseeing the production process. Information taken from the accounting records for the first three months of operations is shown below. Beginning raw materials inventory $ 0 Purchases of raw materials 56, 500 Ending raw materials inventory 28, 250 Direct labour 45, 850 Manufacturing overhead 34, 550 Beginning work in process inventory 0 Ending work in process inventory 6,300 Purchase of production equipment 165,000 Rent for production facility 10, 950 Required: 1. Prepare a schedule of cost of goods manufactured for the company for the month.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter1: Introduction To Cost Accounting

Section: Chapter Questions

Problem 9P: Glasson Manufacturing Co. produces only one product. You have obtained the following information...

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Glasson Manufacturing Co. produces only one product. You have obtained the following information from the corporations books and records for the current year ended December 31, 2016: a. Total manufacturing cost during the year was 1,000,000, including direct materials, direct labor, and factory overhead. b. Cost of goods manufactured during the year was 970,000. c. Factory Overhead charged to Work in Process was 75% of direct labor cost and 27% of the total manufacturing cost. d. The beginning Work in Process inventory, on January 1, was 40% of the ending Work in Process inventory, on December 31. e. Material purchases were 400,000 and the ending balance in Materials inventory was 60,000. No indirect materials were used in production. Required: Prepare a statement of cost of goods manufactured for the year ended December 31 for Glasson Manufacturing. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information.)
the following data (in thousands of dollars) have been taken from the accounting records of Karstone Corporatino for the just completed year. Sales $880 Raw materials in inventory, beginning: $20 Raw materials inventory, ending: $30 Purchases of raw materials: $160 Direct labor: $180 Manufacturing overhead: $230 Administrative expenses $100 Selling expenses: $130 Work in process inventory, beginning: $80 Work in process inventory, ending: $30 Finished goods in inventory, beginning: $120 Finished goods in inventory, ending: $100 The cost of goods manufactured (finished) for the year (in thousands of dollars) was: $610 $600 $500 $630 Show work/calculation
At the beginning of the year, Conway Manufacturing had the following account balances: Work−in−Process Inventory 2,000 Finished Goods Inventory 8,000 Manufacturing Overhead 0 Cost of Goods Sold 0 Sales Revenue 0 The following additional details are provided for the year: Direct materials placed in production $80,800 Direct labor incurred 190,300 Manufacturing overhead incurred 300,700 Manufacturing overhead allocated to production 297,800 Cost of jobs completed and transferred 500,200 The ending balance in the Work−in−Process Inventory account is a ________. A. credit of $2,000 B. debit of $70,700 C. debit of $2,000 D. credit of $70,700
At the beginning of the year, Conway Manufacturing had the following account balances: Work−in−Process Inventory 2,000 Finished Goods Inventory 8,000 Manufacturing Overhead 0 Cost of Goods Sold 0 Sales Revenue 0 The following additional details are provided for the year: Direct materials placed in production $81,800 Direct labor incurred 191,200 Manufacturing overhead incurred 300,000 Manufacturing overhead allocated to production 295,700 Cost of jobs completed and transferred 500,200 The ending balance in the Work−in−Process Inventory account is a ________.
The following data (in thousands of dollars) have been taken from the accounting records of Karstone Corporation for the just completed year. Sales: $880 Raw materials inventory, beginning: $20 Raw materials inventory, ending: $30 Purchases of raw materials: $160 Direct labor: $180 Manufacturing overhead: $230 Administrative expenses: $100 selling expenses: $130 work in process inventory, beginning: $80 work in process inventory, ending: $30 Finished goods in inventory, beginning: $120 Finished goods in inventory, ending: $100 The cost of goods sold for the year (in thousands of dollars) was: $620 $580 $720 $630 Show work and calculation
Cullumber Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending on customer preference. On June 1, 2022, the general ledger for Cullumber Inc. contains the following data. Raw Materials Inventory $4,600 Manufacturing Overhead Applied $35,500 Work in Process Inventory $5,900 Manufacturing Overhead Incurred $30,000 Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Customer Job Cost Element Rodgers Stevens Linton Direct materials $600 $700 $1,000 Direct labor 300 600 700 Manufacturing overhead 375 750 875 $1,275 $2,050 $2,575 During June, raw materials purchased on account were $4,900, and $4,600 of factory wages were paid. Additional overhead costs consisted of depreciation on equipment $1,000 and miscellaneous costs of $400 incurred on account.A…
Cullumber Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending on customer preference. On June 1, 2022, the general ledger for Cullumber Inc. contains the following data. Raw Materials Inventory $4,600 Manufacturing Overhead Applied $35,500 Work in Process Inventory $5,900 Manufacturing Overhead Incurred $30,000 Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Customer Job Cost Element Rodgers Stevens Linton Direct materials $600 $700 $1,000 Direct labor 300 600 700 Manufacturing overhead 375 750 875 $1,275 $2,050 $2,575 During June, raw materials purchased on account were $4,900, and $4,600 of factory wages were paid. Additional overhead costs consisted of depreciation on equipment $1,000 and miscellaneous costs of $400 incurred on account.A…
Al Saffwa Manufacturing Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,200, Work in Process-Cutting $2,900, Work in Process-Assembly $10,600, and Finished Goods $31,000. During July, the following transactions occurred. Purchased $62,500 of raw materials for cash. Incurred $56,000 of factory labor . (Credit Wages Payable 50 % , rest paid in cash.) Incurred $70,000 of manufacturing overhead; $30,000 was paid and the remainder is unpaid. Used factory labor for Cutting $29,000 and Assembly $27.000. Applied overhead at the rate of $15 per machine hour. Machine hours were Cutting 1,720 and Assembly 1,680. Transferred goods costing $139,400 from Assembly to Finished Goods. Sold goods costing $180,000 for $220,000 on account. Instructions Journalize the transactions in proper journal format . (Omit explanations.)
The following data (in thousands of dollars) have been taken from the accounting records of Karstone Corporation for the just completed year. Sales: $880 Raw materials inventory, beginning: $20 Raw materials inventory, ending: $30 Purchases of raw materials: $160 Direct labor: $180 Manufacturing overhead: $230 Administrative expenses: $100 selling expenses: $130 work in process inventory, beginning: $80 work in process inventory, ending: $30 Finished goods in inventory, beginning: $120 Finished goods in inventory, ending: $100 The net operating income for the year (in thousands of dollars) was: $260 $30 $20 ($30) show work/calculation
The following data (in thousands of dollars) have been taken from the accounting records of Karstone Corporation for the just completed year. Sales: $880 Raw materials inventory, beginning: $20 Raw materials inventory, ending: $30 Purchases of raw materials: $160 Direct labor: $180 Manufacturing overhead: $230 Administrative expenses: $100 selling expenses: $130 Work in process inventory, beginning: $80 Work in process inventory ending: $30 Finished goods in inventory, beginning: $120 Finished goods in inventory, ending: $100 The cost of the raw materials used in production during the year (in thousands of dollars) was: $180 $140 $150 $170 Show work/calculation of the problem
Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cos based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). The income statement for Marley's Manufacturing is shown below: Marley's Manufacturing Income Statement Month Ending August 31, 2018 Dept. A Dept. B Sales $21,000 $51,000 Cost of goods sold 10,290 27,030 Gross profit $10,710 $23,970 Utility expenses 1,050 3,570 Wages expense 5,250 10,200 Costs allocated from corporate 1,890 15,300 Total expenses $8,190 $29,070 Operating income/(loss) in dollars $2,520 -$5,100 Operating income/(loss) in percentage 12 % -10 % Assume the market price for the items your department purchase is 15% below what you are being charged by department A of Marley's Manufacturing. Determine the operating income for department B, assuming department A "sold" department B 1,000 units during the month and…
Lind Manufacturing had the following account balances as of January 1. Direct Materials Inventory $ 8,700 Work in Process Inventory 76,500 Finished Goods Inventory 53,000 Manufacturing Overhead 0 During the month of January, all of the following occurred. Direct labor costs were $47,000 for 1,800 hours worked. Direct materials costing $29,000 and indirect materials costing $5,000 were purchased. Sales commissions of $16,000 were earned by the sales force. Direct materials of $23,000 were used in production. Miscellaneous selling and administrative costs of $6,300 were incurred. Factory supervisors earned salaries of $11,035. Other Indirect labor costs for the month were $3,000. Monthly depreciation on factory equipment was $4,500. Monthly utilities expenses of $7,427 were incurred in the factory. Completed units with manufacturing costs of $69,000 were transferred to finished goods. Monthly insurance costs for the factory were $4,200. Monthly property taxes on the factory of $5,000…