The following data are given by Domestic Mfg. Corp.: Increase in Finished Goods Inventory 12,000.00 Decrease in Raw materials Inventory 10,000.00 Increase in Work in Process Inventory 5,000.00 Purchase Returns and Allowances 6,000.00 Freight In 7,000.00 Labor Cost 65,000.00 Factory Overhead 25,000.00 Cost of Goods Sold 153,000.00 How much must be raw materials purchases?
1.The following data are given by Domestic Mfg. Corp.:
Increase in Finished Goods Inventory 12,000.00
Decrease in Raw materials Inventory 10,000.00
Increase in Work in Process Inventory 5,000.00
Purchase Returns and Allowances 6,000.00
Freight In 7,000.00
Labor Cost 65,000.00
Factory Overhead 25,000.00
Cost of Goods Sold 153,000.00
How much must be raw materials purchases?
2. The ff. information is provided by Maunlad Mfg. Corp.:
Cost of Goods Manufactured 470,000.00
Labor Cost 100,000.00
Factory Overhead 50,000.00
Finished Goods Beg 30,000.00
Finished Goods End 20,000.00
Cost of Goods Sold 480,000.00
Raw Materials used 500% of WIP end
Work In Process (WIP) end 75% of WIP beg
Raw Materials used must be:
3. The ff. info was taken from Cody Co.s accounting records for 19C:
Decrease in Raw Materials Inventory 15,000.00
Increase in Finished Goods Inventory 35,000.00
Raw Materials purchased 430,000.00
Direct Labor Payroll 200,000.00
Factory overhead 300,000.00
Freight Out 45,000.00
There was no Work in Process Inventory at the beginning or at the end of the year Cody's Cost of Goods Sold for 19C is
4. The footings on a manufacturing worksheet ( prior to adjustments and extension of balances to the corresponding succeeding columns) are as follows:
DR CR
Manufacturing 158,000.00 39,000.00
Cost of Goods Sold 25,000.00 26,000.00
Income Statement 63,000.00 245,000.00
The ff adjustments have not yet been included in the working paper:
Unused factory supplies, P2,600, still included in the factory supplies expense
Unrecorded purchase returns , P15,000
Understatement in Finished Goods Inventory, P8,000
5. How much should be the net change in Finshed Goods Inventory based on the ff. information?
Increase in raw materials inventory 8,000.00
Decrease in Work in Process Inventory 11,000.00
Direct labor Cost 55,000.00
Factory Overhead 30,000.00
Raw Materials Purchases 85,000.00
Freight In 7,000.00
Purchase Returns and Allowances 9,500.00
Freight Out 2,500.00
Sales 275,000.00
Gross Profit % ( based on Cost) 0.67
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