Required:1. Prepare a statement of cost of goods sold in good form.Bob's BistroStatement of Cost of Goods SoldFor the Coming YearCost of goods manufacturedAdd: Beginning finished goodsCost of goods available for saleLess: Ending finished goodsCost of goods soldFeedbackCheck My Work1. See Example 2.3720,000 X13,000by $ 725,000 X733,000 X-10,000623,000 X2. What if the beginning inventory of finished goods increased by $4,000? What would be the effect on the costof goods sold?increase Cost of Goods SoldBob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 50,000 units will beproduced with the following total costs:Direct materialsDirect laborVariable overheadFixed overhead?$100,00060,000260,000Next year, Bob's Bistro expects to purchase $195,500 of direct materials. Projected beginning and endinginventories for direct materials and work in process are as follows:Direct MaterialsInventory$9,5005,000Work-in-ProcessInventory$4,5002,500BeginningEndingBob's Bistro expects to produce 50,000 units and sell 50,500 units. Beginning inventory of finished goods is$13,000, and ending inventory of finished goods is expected to be $10,000.

The cost of goods manufactured includes the cost of goods that are finished during the period. The…

Cost of Goods Sold Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 50,000 units will b produced with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead Next year, Bob's Bistro expects to purchase $195,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct Materials Inventory $9,500 5,000 Beginning Ending ? $100,000 60,000 260,000 Work-in-Process Inventory $4,500 2,500 Bob's Bistro expects to produce 50,000 units and sell 50,500 units. Beginning inventory of finished goods is $13.000 and ending inventory of finished goods is expected to be $10.000

Cost of Goods Sold Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 50,000 units will b produced with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead Next year, Bob's Bistro expects to purchase $195,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct Materials Inventory $9,500 5,000 Beginning Ending ? $100,000 60,000 260,000 Work-in-Process Inventory $4,500 2,500 Bob's Bistro expects to produce 50,000 units and sell 50,500 units. Beginning inventory of finished goods is $13.000 and ending inventory of finished goods is expected to be $10.000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 6CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...

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Jean and Tom Perritz own and manage Happy Home Helpers. Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of cost of services sold in good form. 2. How does this cost of services sold statement differ from the cost of goods sold statement for a manufacturing firm?
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Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of services produced in good form. 2. What if HHH planned to purchase 30,000 of direct materials? Assume there would be no change in beginning and ending inventories of materials. Explain which line items on the statement of services produced would be affected and how (increase or decrease).
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