Chat with AI
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 41
COST OF GOODS MANUFACTURED, COST IDENTIFICATION, SOLVING FOR UNKNOWNS
Skilz-Accountants Company creates, produces, and sells CD-ROM-based CPA review courses for individual use. Jeretta Loring, head of human resources, is convinced that question development employees must have strong analytical and problem-solving skills. She asked Terrell Slater, controller for Skilz-Accountants, to help develop problems for use in screening applicants before they are interviewed. One of the problems Terrell developed is based on the following data for a mythical company for the previous year:
a. Conversion cost was $240,000 and was three times the prime cost.
b. Direct materials used in production equaled $45,000.
c. Cost of goods manufactured was $295,000.
d. Ending work in process is 20 percent of the cost of beginning work in process.
e. There are no beginning or ending inventories for direct materials.
f. Cost of goods sold was 80 percent of cost of goods manufactured.
g. Beginning finished goods inventory was $14,400.
Required:
1. Using the above information, prepare a cost of goods manufactured statement.
2. Using the above information, prepare a cost of goods sold statement
Skilz-Accountants Company creates, produces, and sells CD-ROM-based CPA review courses for individual use. Jeretta Loring, head of human resources, is convinced that question development employees must have strong analytical and problem-solving skills. She asked Terrell Slater, controller for Skilz-Accountants, to help develop problems for use in screening applicants before they are interviewed. One of the problems Terrell developed is based on the following data for a mythical company for the previous year:
a. Conversion cost was $240,000 and was three times the prime cost.
b. Direct materials used in production equaled $45,000.
c. Cost of goods manufactured was $295,000.
d. Ending work in process is 20 percent of the cost of beginning work in process.
e. There are no beginning or ending inventories for direct materials.
f. Cost of goods sold was 80 percent of cost of goods manufactured.
g. Beginning finished goods inventory was $14,400.
Required:
1. Using the above information, prepare a cost of goods manufactured statement.
2. Using the above information, prepare a cost of goods sold statement
Explanation
Verified
Verified
1.
Prepare cost of goods manufactured s...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
