StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Ending Beginning Inventory $28,500 Inventory $25,500 45,200 Raw materials Work in process Finished goods 21,500 79,300 69,000 Additional information for the month of March follows: Raw materials purchases Indirect materials used $ 40,400 1,300 62,300 Direct labor Manufacturing overhead applied Selling, general, and administrative expenses Sales revenue 36,100 23,700 237,100 Required: 1. Based on the above information, prepare a cost of goods manufactured report. 2. Based on the above information, prepare an income statement for the month of March. O Answer is not complete.

StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Ending Beginning Inventory $28,500 Inventory $25,500 45,200 Raw materials Work in process Finished goods 21,500 79,300 69,000 Additional information for the month of March follows: Raw materials purchases Indirect materials used $ 40,400 1,300 62,300 Direct labor Manufacturing overhead applied Selling, general, and administrative expenses Sales revenue 36,100 23,700 237,100 Required: 1. Based on the above information, prepare a cost of goods manufactured report. 2. Based on the above information, prepare an income statement for the month of March. O Answer is not complete.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter27: Adjustments, Financial Statements, And Year-end Accounting For A Manufacturing business

Section: Chapter Questions

Problem 1MP: Reese Manufacturing Company manufactures and sells a limited line of products made to customer...

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Reese Manufacturing Company manufactures and sells a limited line of products made to customer order. The company uses a perpetual inventory system and keeps its accounts on a calendar year basis. A 6-column spreadsheet is presented on page 1100. Additional information needed to prepare the income statement and schedule of cost of goods manufactured is as follows: REQUIRED 1. Prepare an income statement and schedule of cost of goods manufactured for the year ended December 31,20--. 2. Prepare a statement of retained earnings for the year ended December 31,20--. 3. Prepare a balance sheet as of December 31, 20--. 4. Prepare the adjusting, closing, and reversing entries.
Webster Company uses backflush costing to account for its manufacturing costs. The trigger points for recording inventory transactions are the purchase of materials, the completion of products, and the sale of completed products. Required: 1. Prepare journal entries, if needed, to account for the followingtransactions. a. Purchased raw materials on account, 135,000. b. Requisitioned raw materials to production, 135,000. c. Distributed direct labor costs, 20,000. d. Incurred manufacturing overhead costs, 80,000. (Use Various Credits for the credit part of the entry.) e. Cost of products completed, 235,000. f. Completed products sold for 355,000, on account. 2. Prepare any journal entries that would be different from theabove, if the only trigger points were the purchase of materialsand the sale of finished goods.
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
E2-7 FIFO COSTING Using first-in, first-out perpetual inventory costing and the following information, determine the cost of materials used and the cost of the July 31 inventory:July 1 Balance on hand, 960 yd of linen @ $3.65 each.3 Issued 192 yd.5 Received 480 yd @ $4.56 each.6 Issued 120 yd.10 Issued 96 yd.11 Factory returned 18 yd, which were issued on the 10th, to the storeroom.15 Received 576 yd @ $5.05 each.20 Returned 336 yd to the vendor from the July 15 purchase.26 Issued 672 yd.E2-8 LIFO costing -Using last-in, first-out perpetual inventory costing and the information presented in E2-7, compute the cost of materials used and the cost of the July 31 inventory.
E1-9 Determining materials, labor, and cost of goods sold The following inventory data relate to Edwards, Inc. INVENTORIES ENDING BEGINNING Finished goods $82,294 $120,698 Work in process $87,780 $76,808 Direct materials $104,239 $98,753 Revenues and Cost for the period: Sales $987,525 Cost of goods available for sale $850,369 Total manufacturing costs $740,644 Factory overhead $192,019 Direct materials used $224,936 Calculate the following for the year:a. Direct materials purchasedb. Direct labor costs incurredc. Cost of goods soldd. Gross profit (Hint Answers to subsequent parts may require using solutions from earlier parts)
Sierra Co. provided the following information for the year ended December 31, 20Y1 Costs Amount Finished goods inventory - beginning balance $150,000 Finished goods inventory - ending balance $120,000 Costs of Goods manufactured $380,000 Selling expenses $85,000 General and administrative expenses $245,000 Sales revenue $1,120,000 Costs of goods sold for the year ended December 31, 20Y1: $ Net income for the year ended December 31, 20Y1: $ Instruction: Do not use "$" in your answer. Use thousand separator. E.g., 1,500,000
If GB Inc. has material cost of P10,000 in the July 1 RIP Inventory account, and P12,500 in the July 31 RIP inventory account and the amount of raw materials used backflushed from RIP inventory account on July 31 is P202,500, what is the amount of raw materials purchased on credit for the month of July? a. P205,000 b. P200,000 c. P225,000 d. P190,000
If GB Inc. has material cost of P10,000 in the July 1 RIP Inventory account, and P12,500 in the July 31 RIP inventory account and the amount of raw materials used backflushed from RIP inventory account on July 31 is P202,500, what is the amount of raw materials purchased on credit for the month of July? P205,000 P200,000 P225,000 P190,000
Referring to the situation in P9.2 for Garcia Home Improvement Company, consider the following expanded data at May 31, 2020. Assume Garcia uses LIFO inventory costing. Cost ReplacementCost SalesPrice Net RealizableValue NormalProfit Aluminum siding $ 70,000 $ 62,500 $ 64,000 $ 56,000 $ 5,100 Cedar shake siding 86,000 79,400 94,000 84,800 7,400 Louvered glass doors 112,000 124,000 186,400 168,300 18,500 Thermal windows 140,000 126,000 154,800 140,000 15,400 Total $408,000 $391,900 $499,200 $449,100 $46,400 Instructions a. 1. Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2020. 2. For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory to Market. Prior to adjustment, the Allowance account had a balance of $27,500. b. Explain the rationale for the use of the lower-of-cost-or-market rule as it…
E2-8 LIFO costing Using last-in, first-out perpetual inventory costing and the information presented in E2-7, compute the cost of materials used and the cost of the July 31 inventory. Information on E2-7 July 1 Balance on hand, 1,000 yd of linen @ $4.00 each. 3 Issued 250 yd. 5 Received 500 yd @ $4.50 each. 6 Issued 150 yd. 10 Issued 110 yd. 11 Factory returned 10 yd, which were issued on the 10th, to the storeroom. 15 Received 500 yd @ $5.00 each. 20 Returned 300 yd to the vendor from the July 15 purchase. 26 Issued 600 yd
Sarah furniture Materials inventory Details, beginning P80,000.00, Purchases P55,000.00, Freight In P5,000.00, Freight out P2,000.00, Purchase discount P1,000.00 and Ending Materials inventory ending P38,000.00. How much is the material used in the production?
Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers. For December,2022. Company presented the following costs on processes: In December, under FIFO method, what is average unit cost of inventory transferred from Process 2 to Process 3? P24.56 P25.03 P25.22 P24.76