Allright Test Design Company creates, produces, and sells Internet-based CPA and CMA review courses for individual use. Davis Webber, head of human resources, is convinced that question development employees must have strong analytical and problem-solving skills. He asked Andrea Benson, controller for Allright Test Design, to help develop problems for use in screening applicants before they are interviewed. One of the problems Andrea developed is based on the following data for a mythical company (Mythic, Inc.) for the previous year: Conversion cost was $139,000 and was four times the prime cost. Direct materials used in production equaled $5,200. Cost of goods manufactured was $153,200. Ending work in process is 50 percent of the cost of beginning work in process. There are no beginning or ending inventories for direct materials. Cost of goods sold was 110 percent of cost of goods manufactured. Beginning finished goods inventory was $22,190. Required: Question Content Area 1. Using the above information, prepare a cost of goods manufactured statement. Mythic, Inc.Statement of Cost of Goods ManufacturedFor the Previous Year $- Select - - Select - - Select - $- Select - - Select - - Select - Cost of goods manufactured Question Content Area 2. Using the above information, prepare a cost of goods sold statement. Mythic, Inc.Statement of Cost of Goods SoldFor the Previous Year $- Select - - Select - $- Select - - Select - Cost of goods sold

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Allright Test Design Company creates, produces, and sells Internet-based CPA and CMA review courses for individual use. Davis Webber, head of human resources, is convinced that question development employees must have strong analytical and problem-solving skills. He asked Andrea Benson, controller for Allright Test Design, to help develop problems for use in screening applicants before they are interviewed. One of the problems Andrea developed is based on the following data for a mythical company (Mythic, Inc.) for the previous year:

Conversion cost was $139,000 and was four times the prime cost.
Direct materials used in production equaled $5,200.
Cost of goods manufactured was $153,200.
Ending work in process is 50 percent of the cost of beginning work in process.
There are no beginning or ending inventories for direct materials.
Cost of goods sold was 110 percent of cost of goods manufactured.
Beginning finished goods inventory was $22,190.

Required:

Question Content Area

1. Using the above information, prepare a cost of goods manufactured statement.

Mythic, Inc.Statement of Cost of Goods ManufacturedFor the Previous Year

	$- Select -
	- Select -
	- Select -
	$- Select -
	- Select -
	- Select -
Cost of goods manufactured

Question Content Area

2. Using the above information, prepare a cost of goods sold statement.

Mythic, Inc.Statement of Cost of Goods SoldFor the Previous Year

	$- Select -
	- Select -
	$- Select -
	- Select -
Cost of goods sold

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