Compute cost of goods manufactured and cost of goods sold from the following amounts, using the equation method.  Begin                                       Beginning of the year           End of Year Direct materials inventory                   $22,000                     $26,000            Work in process inventory                  38,000                          30,000 Finished goods inventory                   18,000                          23,000 Purchases of direct materials                                                  75,000                                                                                                                             Direct labor                                                                              82,000                                                       Manufacturing overhead                                                          39,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
  1. Compute cost of goods manufactured and cost of goods sold from the following amounts, using the equation method.  Begin                                       Beginning of the year           End of Year

Direct materials inventory                   $22,000                     $26,000           

Work in process inventory                  38,000                          30,000

Finished goods inventory                   18,000                          23,000

Purchases of direct materials                                                  75,000                                                                                                                            

Direct labor                                                                              82,000                                                      

Manufacturing overhead                                                          39,000

2. Clyde’s Pets manufactures chewing bones for puppies. At the end of December 2008, his accounting records showed the following:

 Inventories                          Beginning                                      Ending

Materials                                $13,500                                         $9,000

Work in process                            0                                               1,250

Finished goods                             0                                               5,700

Other information:

Direct material purchases      $31,000     Utilities for plants         $4,500         

Plant janitorial service             1,250              Rent on plants          9,000

Sales salaries expense          5,000  Customer service hotline expense   1,000

 Delivery expense                    1,500              Direct labor                   18,000

Sales revenue                           105,000

 Requirements:

Prepare a schedule of cost of goods manufactured for the year ended December 31, 2008.

Prepare an income statement for Clyde’s Pets for the year ended December 31, 2008.

Given that the company manufactured 17,500 units, of its product in 2008, compute the company’s unit product cost for the year.

                                                

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Cost volume profit (CVP) analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education