Question 1

Glavine Corporation incurred the following costs while manufacturing its product. $\begin{array}{lrllr}
\text { Waterials used in product } & \$ 125,000 & & \text { Advertising expense } & \$ 45,000 \
\text { Depreciation on plant } & 60,000 & & \text { Property taxes on plant } & 19,000 \
\text { Property taxes on store } & 7,500 & & \text { Delivery expense } & 21,000 \
\text {Labor costs of assembly-line workers } & 110,000 & & \text { Sales commissions } & 35,000 \
\text { Factory supplies used } & 23,000 & & \text { Salaries paid to sales clerks } &50,000
\end{array}$ Work-in-process inventory was $27000 at January 1 and $15500 at December 31. Finished goods inventory was $65000 at January 1 and $50600 at December 31.
Instructions
(a) Compute cost of goods manufactured.
(b) Compute cost of goods sold.

Accepted Answer

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Question 2

Rabid Manufacturing Company has the following data: $$\begin{array} { l r } 
\text { Direct labor } & \$ 145,000 \
\text { Direct materials used } & 151,000 \
\text { Total manufacturing overhead } & 208,000 \
\text { Beginning work in process } & 26,000
\end{array}$$ Instructions
Compute (a) total manufacturing costs and (b) total cost of work in process.

Accepted Answer

The answer of Rabid Manufacturing Company has the following data:...

Question 3

Presented below are incomplete 2016 manufacturing cost data for Tardy Corporation. $\begin{array}{ccccccc}
&&&&\text { Total}&\text { Work in}&\text { Work in }&\text { Cost of }\
&\text { DirectMaterials  }&\text {Direct }&\text {Manufacturing  }&\text  {Manufacturing  }&\text {Process  }&\text {Process } &\text { Goods }\
&\text { Used }&\text {Labor }&\text {Overhead }&\text { Costs } &(1 / 1) &(12 / 31)& \text { Manufactured }\
\hline\text { (a) } & \$ 38,000 & \$ 80,000 & \$ 48,000 & ? & \$ 120,000 & \$ 96,000 & ? \
\text { (b) } & \$ 149,000 & \$ 53,000 & \$ 90,000 & \$ 292,000 & ? & \$ 98,000 & \$ 311,000 \
\text { (c) } & \$ 53,000 & \$ 116,000 & \$ 121,000 & \$ 290,000 & \$ 403,000 & ? & \$ 515,000
\end{array}$ Instructions
Determine the missing amounts.

Accepted Answer

The answer of Presented below are incomplete 2016 manufacturing cost...

Question 4

Assume you have just taken a position as controller for a new company that manufactures and sells wrought iron wall hangings. Although the founder of the company who is the president and CEO is a great artisan she has very limited knowledge of accounting.
Instructions
To help your new boss better understand accounting for a manufacturing organization prepare a response to her in which you: (1) identify (2) describe and (3) provide examples of the three manufacturing costs and the three inventory accounts used in accounting for a manufacturing company.

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Question 5

Klein Company manufactures boats. During September 2016 the company purchased 100 cellular phones at a cost of $110 each. Klein withdrew 70 phones from the warehouse during the month. Twenty of these phones were installed in salespersons' cars and the remaining 50 phones were put in boats manufactured during the month.
Of the boats put into production during September 2016 80% were completed and transferred to the company's storage lot. Fifty percent of the boats completed during the month were sold by September 30.
Instructions
Determine the cost of cellular phones that would appear in each of the following accounts at September 30 2016:
Raw materials inventory
Work in process inventory
Finished goods inventory
Cost of goods sold
Selling expenses

Accepted Answer

The answer of Klein Company manufactures boats. During September 2016...

Question 6

From the account balances listed below prepare a schedule of cost of goods manufactured for Sampson Manufacturing Company for the month ended December 31 2016. $\begin{array} { l r } 
& \text { Account Balances } \
 \text { Finished Goods Inventory, December } 31 & \$ 42,000 \
\text { Factory Supervisory Salaries } & 12,000 \
\text { Income Tax Expense } & 18,000 \
\text { Raw Materials Inventory, December 1 } & 12,000 \
\text { Work In Process Inventory, December } 31 & 15,000 \
\text { Sales Salaries Expense } & 14,000 \
\text { Factory Depreciation Expense } & 8,000 \
\text { Finished Goods Inventory, December 1 } & 35,000 \
\text { Raw Materials Purchases } & 105,000 \
\text { Work In Process Inventory, December 1 } & 25,000 \
\text { Factory Utilities Expense } & 6,000 \
\text { Direct Labor } & 70,000 \
\text { Raw Materials Inventory, December 31 } & 19,000 \
\text { Sales Returns and Allowances } & 5,000 \
\text { Indirect Labor } & 21,000
\end{array}$

Accepted Answer

The answer of From the account balances listed below prepare...

Question 7

Kwik Delivery Service reports the following costs and expenses in June 2016. $$\begin{array} { l r r r } 
\text { Indirect materials } & \$ 8,400 & \text { Driver's salaries } & \$ 17,000 \
\text { Depreciation on delivery } & & \text { Advertising }& 5,100  \
\text { equipment } & 11,200 & \text { Delivery equipment } \
\text { Dispatcher's salary } & 5,000 & \text { repairs } &300\
\text { Propery taxes on office } & & \text { Office supplies } &650\
\text { building } & 870 & \text { Office utilities } &2,490\
\text { CEO's salary } & 12,000 & \text { Repairs on office } & \
\text { Gas and oil for delivery trucks } & 3,200 & \text { equipment } &180
\end{array}$$ Instructions
Determine the total amount of (a) delivery service (product) costs and (b) period costs.

Accepted Answer

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Question 8

In alphabetical order below are current asset items for Sudler Company as of December 31 2016. Prepare the current assets section of the company's balance sheet as of the same date. 11eb1392_1b95_1512_8021_a1cf93991561

Accepted Answer

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Question 9

Yates Manufacturing Company incurs the following manufacturing costs and expenses during the month of May.
1. Assembly line wages
2. Raw materials used directly in product
3. Depreciation on office equipment
4. Property taxes on factory building
5. Rent on factory building
6. Sales commissions
7. Depreciation on factory equipment
8. Factory utilities
9. Wages for factory maintenance workers
10. Advertising
11. Indirect materials used in production
12. Factory manager's salary
Instructions
Complete the following matrix by placing an X mark under the appropriate headings.

Accepted Answer

The answer of Yates Manufacturing Company incurs the following manufacturing...

Question 10

Peters Manufacturing Company has the following data at June 30 2016:
Instructions
(a) Prepare an income statement through gross profit for the month of June.
(b) Indicate the balance sheet presentation of the June 30 inventories.

Accepted Answer

The answer of Peters Manufacturing Company has the following data...

Question 11

The following costs and inventory data were taken from the accounts of Simon Company for 2016: $$\begin{array} { l r r r } 
& \text { January 1,2016 } & \text { December 31, 2016 } \
\text { Inventories: } & & & \text { Raw } \
\text { materials } & \$ 8,000 & \$ 7,000 & \
\text { Work in process } & 15,000 & 13,000 & \
\text { Finished goods } & 16,000 & 12,000 &\
\text { Costs incurred: } & & & \text { Raw }  \
\text { materials purchases } & & \$ 98,000 & \
\text { Direct labor } && 42,000 \
\text { Factory rent } & & 8,000 \
\text { Factory utilities } && 10,000 \
\text { Indirect materials } & & 6,000 \
\text { Indirect labor } && 9,000  \
\text { Operating expenses } & & 17,000
\end{array}$$ Instructions 
a. Prepare a schedule showing the amount of direct materials used in production during the year.
b. Compute the amount of manufacturing overhead incurred during the year.
c. Prepare a schedule of Cost of Goods Manufactured for Simon Company for the year ended December 31 2016 in good form.
d. Prepare the Cost of Goods Sold section of the Income Statement for Simon Company for the year ended December 31 2016 in good form.

Accepted Answer

The answer of The following costs and inventory data were...

Question 12

Presented below is a list of costs and expenses incurred in the factory by Nu-Way Corporation a manufacturer of recreational vehicles.
____ 1. Property taxes on the factory land
____ 2. Nails and glue used in production
____ 3. Cabinet maker's wages
____ 4. Factory supervisors' salaries
____ 5. Metal used in manufacturing
____ 6. Depreciation on factory machines
____ 7. Factory utilities
____ 8. Carpeting for the recreational vehicles
____ 9. Property taxes on the factory building
____ 10. Insurance on factory equipment
Instructions
Classify the above items into the following categories:
DM - Direct Materials
DL - Direct Labor
MO - Manufacturing Overhead

Accepted Answer

The answer of Presented below is a list of costs...

Question 13

Volumetrica a producer of audio equipment for large computer systems is reviewing its policies as part of a biannual self-examination of the company. As part of this process all managers have been asked to carefully examine costs and determine as closely as possible which costs are direct and which are indirect.
Linda Bedard and Sam Hilton managers of different manufacturing departments in the same building have been working together. They found the following four costs that could be economically traced to the products but have historically been a part of overhead:
$\bullet$Cost of setting up the machinery for a different production run.
$\bullet$Cost of minor assembly components such as knobs and switches.
$\bullet$Cost of packaging which is quite different for each model.
$\bullet$Cost of inspecting and testing each model.
None of the costs is significant by itself but together these four costs make up between 10 and 15% of the total cost of the product. Linda favors "leaving well enough alone" as she puts it and leaving these costs in overhead. She is afraid that her volunteering to trace these costs will result in her having to trace many more costs in the future. Sam on the other hand prefers to have the product cost as accurate as possible. He points out that these costs are already known and the process would require little extra work.
Required:
You have been called on in your function as accounting manager to resolve the dispute. Write a memo to Linda and Sam supporting one or the other position. Be sure to adequately defend your position but be brief.

Accepted Answer

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Question 14

For each item identify all applicable cost labels. Use the following code in your answer:

Accepted Answer

The answer of For each item identify all applicable cost...

Question 15

Manufacturing cost data for Morton Company are presented below. $$\begin{array} { l c c c } 
& \text { Case A } & \text { Case B } & \text { Case C } \
\text { Direct materials used } & ( \mathrm { a } ) & \$ 75,400 & \$ 130,000 \
\text { Direct labor } & \$ 57,000 & 76,000 & ( \mathrm {~g} ) \
\text { Manufacturing overhead } & 46,500 & 81,600 & 102,000 \
\text { Total manufacturing costs } & 195,650 & ( \mathrm {~d} ) & 283,700 \
\text { Work-in-process, } 1 / 1 / 16 & ( \mathrm {~b} ) & 16,500 & ( \mathrm {~h} ) \
\text { Total cost of work-in-process } & 221,500 & ( \mathrm { e } ) & 327,000 \
\text { Work-in-process, 12/31/16 } & ( \mathrm { c } ) & 9,000 & 80,000 \
\text { Cost of goods manufactured } & 180,275 & ( \mathrm { f } ) & ( \mathrm { i } )
\end{array}$$ Instructions
Indicate the missing amount for each letter (a) through (i).

Accepted Answer

The answer of Manufacturing cost data for Morton Company are...

Question 16

Among the items that Howard Print Shop accounts for are the following:  Howard Print Shop prepares the following schedule and financial statements on a yearly basis:
(a) Cost of goods manufactured schedule.
(b) Income statement.
(c) Balance sheet.
Instructions
For each item indicate by using the appropriate letter(s) the schedule and/or financial statements in which the item will appear.

Accepted Answer

The answer of Among the items that Howard Print Shop...

Question 17

Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below indicate which characteristics are more closely related to financial accounting by placing the letter "F" in the space to the left of the item and indicate those characteristics which are more closely associated with managerial accounting by placing the letter "M" to the left of the item.

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The answer of Financial accounting information and managerial accounting information...

Question 18

Manufacturing costs for Carson Company for selected months are as follows: $\begin{array}{lrcr}
&\text { April }&\text { July }& \text { October }\
\text { Beginning work in process } & \$ 80,000 & (\mathrm{f}) & \$ 88,000 \
\text { Direct materials used } & 280,000 & \$ 190,000 & 155,000 \
\text { Direct labor } & 195,000 & 170,000 & (\mathrm{j}) \
\text { Manufacturing overhead } & (\mathrm{a}) & 150,000 & 90,000 \
\text { Total manufacturing costs } & 860,000 & 510,000 & 450,000 \
\text { Total cost of work in process } & (\mathrm{b}) & 640,000 & (\mathrm{k}) \
\text { Ending work in process } & 75,000 & (\mathrm{~g}) & (\mathrm{l}) \
\text { Cost of goods manufactured } & (\mathrm{c}) & 515,000 & 385,000 \
\text { Beginning finished goods } & (\mathrm{d}) & 38,000 & (\mathrm{~m}) \
\text { Cost of goods available for sale } & 960,000 & (\mathrm{~h}) & 480,000 \
\text { Ending finished goods } & (\mathrm{e}) & 75,000 & (\mathrm{n}) \
\text { Cost of goods sold } & 820,000 & (\mathrm{i}) & 355,000
\end{array}$ Instructions
Indicate the missing amounts. (Show computations.)

Accepted Answer

The answer of Manufacturing costs for Carson Company for selected...

Question 19

For each item listed below indicate in the space to the left whether the item would be considered a product cost or a period cost for a manufacturing company. Use the following code:

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The answer of For each item listed below indicate in...

Question 20

Determine whether each of the following is classified as:

Accepted Answer

The answer of Determine whether each of the following is...

Quiz 19: Managerial Accounting

In alphabetical order below are current asset items for Sudler Company as of December 31 2016. Prepare the current assets section of the company's balance sheet as of the same date. 11eb1392_1b95_1512_8021_a1cf93991561

Peters Manufacturing Company has the following data at June 30 2016: Instructions (a) Prepare an income statement through gross profit for the month of June. (b) Indicate the balance sheet presentation of the June 30 inventories.

For each item identify all applicable cost labels. Use the following code in your answer:

For each item listed below indicate in the space to the left whether the item would be considered a product cost or a period cost for a manufacturing company. Use the following code:

Determine whether each of the following is classified as: