The following information were obtained from the records of Sunshine Enterprise for thecurrent year ended December 31:Cash19800Accounts Receivable44000Raw Materials Inventory Jan 170000Raw Materials Inventory Dec 3180000Work in Process Jan 115000Work in Process Dec 3142000Finished Goods Jan 1109900Finished Goods Dec 31155000Indirect Labor50000Direct Labor142500Factory supplies used30000Freight in9000Advertising Expense16000Sales Salaries25000Administrative Salaries41000Bad Debt Expense5000Allowance for Bad DebtsDirect Material Purchases3100137500471000SalesThe costs below are common costs incurred by various facilities to be allocated asfollows: (Hint: Costs allocated to Factory will be part of Factory Overhead)Administrative30%Factory60%60%60%60%Sales10%25%20%20%Total CostsUtilities250003500015%20%20%TaxesInsurance1000030000DepreciationRequired:1. Allocate the common costs to Factory, Sales and Administrative.2. Compute for Total Manufacturing Cost, Cost of Goods Manufactured and Cost ofGoods Sold. Compute for the Net Income after tax (if applicable )(SHOW SOLUTION).

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The following information were obtained from the records of Sunshine Enterprise for the current year ended December 31: Cash 19800 Accounts Receivable 44000 Raw Materials Inventory Jan 1 70000 Raw Materials Inventory Dec 31 80000 Work in Process Jan 1 15000 Work in Process Dec 31 42000 Finished Goods Jan 1 109900 Finished Goods Dec 31 155000 Indirect Labor 50000 Direct Labor 142500 Factory supplies used 30000 Freight in 9000 Advertising Expense 16000 Sales Salaries 25000 Administrative Salaries 41000 Bad Debt Expense 5000 Allowance for Bad Debts 3100 Direct Material Purchases Sales 137500 471000 The costs below are common costs incurred by various facilities to be allocated as follows: (Hint: Costs allocated to Factory will be part of Factory Overhead) Total Costs 25000 35000 Factory 60% Administrative 30% Sales Utilities 10% 25% 20% 20% Taxes 60% 60% 60% 15% 20% 20% Insurance 10000 Depreciation 30000 Required: 1. Allocate the common costs to Factory, Sales and Administrative. 2. Compute for Total Manufacturing Cost, Cost of Goods Manufactured and Cost of Goods Sold. Compute for the Net Income after tax (if applicable )(SHOW SOLUTION).

The following information were obtained from the records of Sunshine Enterprise for the current year ended December 31: Cash 19800 Accounts Receivable 44000 Raw Materials Inventory Jan 1 70000 Raw Materials Inventory Dec 31 80000 Work in Process Jan 1 15000 Work in Process Dec 31 42000 Finished Goods Jan 1 109900 Finished Goods Dec 31 155000 Indirect Labor 50000 Direct Labor 142500 Factory supplies used 30000 Freight in 9000 Advertising Expense 16000 Sales Salaries 25000 Administrative Salaries 41000 Bad Debt Expense 5000 Allowance for Bad Debts 3100 Direct Material Purchases Sales 137500 471000 The costs below are common costs incurred by various facilities to be allocated as follows: (Hint: Costs allocated to Factory will be part of Factory Overhead) Total Costs 25000 35000 Factory 60% Administrative 30% Sales Utilities 10% 25% 20% 20% Taxes 60% 60% 60% 15% 20% 20% Insurance 10000 Depreciation 30000 Required: 1. Allocate the common costs to Factory, Sales and Administrative. 2. Compute for Total Manufacturing Cost, Cost of Goods Manufactured and Cost of Goods Sold. Compute for the Net Income after tax (if applicable )(SHOW SOLUTION).

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter1: Introduction To Cost Accounting

Section: Chapter Questions

Problem 9P: Glasson Manufacturing Co. produces only one product. You have obtained the following information...

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An examination of Buckhorn Fabricators records reveals the following transactions: a. On December 31, the physical inventory of raw material was 9,950 gallons. The book quantity, using the weighted average method, was 10,000 gal @ .52 per gal. b. Production returned to the storeroom materials that cost 775. c. Materials valued at 770 were charged to Factory Overhead (Repairs and Maintenance), but should have been charged to Work in Process. d. Defective material, purchased on account, was returned to the vendor. The material returned cost 234. e. Goods sold to a customer, on account, for 5,000 (cost 2,500) were returned because of a misunderstanding of the quantity ordered. The customer stated that the goods returned were in excess of the quantity needed. f. Materials requisitioned totaled 22,300, of which 2,100 represented supplies used. g. Materials purchased on account totaled 25,500. Freight on the materials purchased was 185. h. Direct materials returned to the storeroom amounted to 950. i. Scrap materials sent to the storeroom were valued at an estimated selling price of 685 and treated as a reduction in the cost of all jobs worked on during the period. j. Spoiled work sent to the storeroom valued at a sales price of 60 had production costs of 200 already charged to it. The cost of the spoilage is to be charged to the specific job worked on during the period. k. The scrap materials in (i) were sold for 685 cash. Required: Record the entries for each transaction.
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