PR 15-5B Statement of cost of goods manufactured and incomeCost of goods manufactured, $367,510 statement for a manufacturing company. The following information is available for Shanika Company for 20Y6InstructionsPrepare the 20Y6 statement of cost of goods manufactured.Prepare the 20Y6 income statement.InventoriesJanuary 1December 31 Materials$ 77,350$ 95,550 Work in process$ 109,200$ 96,200 Finished goods$ 113,750$ 100,100 Advertising expense $ 68,250 Depreciation expense—office equipment $ 22,750 Depreciation expense—factory equipment $ 14,560 Direct labor $ 186,550 Heat, light, and power—factory $ 5,850 Indirect labor $ 23,660 Materials purchased $ 123,500 Office salaries expense $ 77,350 Property taxes—factory $ 4,095 Property taxes—headquarters building $ 13,650 Rent expense—factory $ 6,825 Sales $ 864,500 Sales salaries expense $ 136,500 Supplies—factory $ 3,250 Miscellaneous costs—factory $ 4,420

It has been given in the question that the cost of goods manufactured during the period for the year…

Answered: Prepare the 20Y6 statement of cost of…

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 15.9EX: Classifying costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and...

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Analyzing manufacturing cost accounts Clapton company manufactures custom guitars in a wide variety of styles. The following incomplete ledger accounts refer to transactions that are summarized for May: In addition, the following information is available: A. Materials and direct labor were applied to six jobs in May: Job No. Style Quantity Direct Materials Direct Labor 101 AF1 330 82,500 59,400 102 AF3 380 105,400 72,600 103 AF2 500 132,000 110,000 104 VY1 400 66,000 39,600 105 VY2 660 118,800 66,000 106 AF4 330 66,000 30,800 Total 2,600 570,700 378,400 B. Factory overhead is applied to each job at a rate of 50% of direct labor cost. C. The May 1 Work in Process balance consisted of two jobs, as follows: Job No. Style Work in Process, May 1 101 AF1 26,400 102 AF3 46,000 Total 72,400 D. Customer jobs completed and units sold in May were as follows Job No. Style Completed in May Units Soldin May 101 AF1 X 264 102 AF3 X 360 103 AF2 0 104 VY1 X 384 105 VY2 X 530 106 AF4 0 Instructions 1. Determine the missing amounts associated with each letter. Provide supporting calculations by completing a table with the following headings: JobNo. Quantity May 1 Work in Process Direct Materials Direct Labor Factory Overhead Total Cost Unit Cost Units Sold Cost of Goods Sold 2. Determine the May 31 balances for each of the inventory accounts and factory overhead.
Construct and interpret a product profitability report, allocating selling and administrative expenses Naper Inc. manufactures power equipment. Naper has two primary productsgenerators and air compressors. The following report was prepared by the controller for Napers senior marketing management for the year ended December 31: Generators Air Compressors Total Revenue 4,200,000 3,000,000 7,200,000 Cost of goods sold 2,940,000 2,100,000 5,040,000 Gross profit 1,260,000 900,000 2,160,000 Selling and administrative expenses 610,000 Income from operations 1,550,000 The marketing management team was concerned that the selling and administrative expenses were not traced to the products. Marketing management believed that some products consumed larger amounts of selling and administrative expense than did other products. To verify this, the controller was asked to prepare a complete product profitability report, using activity-based costing. The controller determined that selling and administrative expenses consisted of two activities: sales order processing and post-sale customer service. The controller was able to determine the activity base and activity rate for each activity, as follows: Activity Activity Base Activity Rate Sales order processing Sales orders 65 per sales order Post-sale customer service Service requests 200 per customer service request The controller determined the following activity-base usage information about each product: Generators Air Compressors Number of sales orders 3,000 4,000 Number of service requests 225 550 A. Determine the activity cost of each product for sales order processing and post-sale customer service activities. B. Use the information in (A) to prepare a complete product profitability report dated for the year ended December 31. Compute the gross profit to sales and the income from operations to sales percentages for each product. (Round to two decimal places.) C. Interpret the product profitability report. How should management respond to the report?

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Materials	$ 77,350	$ 95,550
Work in process	$ 109,200	$ 96,200
Finished goods	$ 113,750	$ 100,100
Advertising expense		$ 68,250
Depreciation expense—office equipment		$ 22,750
Depreciation expense—factory equipment		$ 14,560
Direct labor		$ 186,550
Heat, light, and power—factory		$ 5,850
Indirect labor		$ 23,660
Materials purchased		$ 123,500
Office salaries expense		$ 77,350
Property taxes—factory		$ 4,095
Property taxes—headquarters building		$ 13,650
Rent expense—factory		$ 6,825
Sales		$ 864,500
Sales salaries expense		$ 136,500
Supplies—factory		$ 3,250
Miscellaneous costs—factory		$ 4,420

Prepare the 20Y6 statement of cost of goods manufactured. Prepare the 20Y6 income statement.