Prepare a statement of Cost of Goods Manufactured and a statement of Cost of Goods Sold in good form.
The following information is for the Furbee Manufacturing Company for November.
Inventories Beginning Ending
Raw Material P19,750 P15,400
Work in Process 35,350 32,200
Finished Goods 21,300 27,900
Direct Labor (22,000 DLH @ P14)
Raw Material Purchases P155,000 Insurance-Office 2,750
Indirect Labor 11,600 Office Supplies Expense 1,050
Factory Supplies Used 475 Insurance-Factory 1,825
Other Expenses: Depr. Office Equipment 3,900
Depr.-Factory Equipment 18,100 Repair/MaintenanceFactory
7,800
Prepare a statement of Cost of Goods Manufactured and a statement of Cost of Goods Sold in
good form.
2. The following information was taken from the records of the Slidell Corporation for the
month of July. (There were no inventories of work in process or finished goods on July 1.)
Units Cost
Sales during month 8,000 P ?
Direct material 32,000
Direct labor 20,000
Overhead costs applied 15,000
Overhead costs under-applied 800
Inventories, July 31:
Work in process 1,000 ?
Finished goods 2,000 ?
Indirect manufacturing costs are applied on a direct labor cost basis. The under-applied balance
is due to seasonal variations and will be carried forward. The following cost estimates have been
submitted for the work in process inventory of July 31: material, P3,000; direct labor, P2,000.
Required:
a. Determine the number of units that were completed and transferred to finished
goods during the month.
b. Complete the estimate of the cost of work in process on July 31.
c. Compute cost of goods manufactured for the month.
d. Determine the cost of each unit completed during the month.
e. Determine the total amount debited to the Overhead Control accounts during the
month.
3. Classify the following costs of activity inputs as variable, fixed or mixed.
a. Flu vaccine
b. Salaries, Equipment, and materials used for moving materials in a factory
c. Forms use to file insurance claims
d. Salaries, forms, and postage associated with purchasing
e. Printing and postage for advertising circulars
f. Equipment, labor, and parts used to repair and maintain production equipment
g. Power to operate sewing machines in a clothing factory
h. Wooden cabinets enclosing audio speakers
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