Direct Materials Direct Labor Manufacturing overhead Total Manufacturing costs Work-in-process 1/1 Work-in-process 12/31 Cost of goods manufactured Sales Finished Goods 1/1 Cost of Goods Available Finished Goods 12/31 Cost of Goods Sold Gross Profit Operating Expenses Net Operating Income Case 1 $36,000 $12,000 $78,000 $12,000 $66,000 $180,000 $42,000 $78,000 $54,000 Case 2 $5,000 $6,000 $21,000 $2,000 $33,000 $50,000 $9,000 $7,000 $10,000 a Calculate the unknown amounts for both Case 1 and 2 b For Case 1, compute the total prime costs for the year. c For Case 1, compute the total conversion costs for the year. d For Case 1, compute the average price per unit if the company sold 15,000 uni e For Case 1, compute the operating income per unit if the company sold 15,000 units f For Case 1, compute the POHR assuming Manufacturing overhead is applied based on DL cost g For Case 1, review beginning and ending work in process. As an auditor or manager what one question might you possibly have? h For Case 1, review beginning and ending finished goods inventory. As an auditor or manager what question might you possibly have? i For Case 1, review beginning and ending direct materials inventory. As an auditor or manager what question might you possibly have?
Direct Materials Direct Labor Manufacturing overhead Total Manufacturing costs Work-in-process 1/1 Work-in-process 12/31 Cost of goods manufactured Sales Finished Goods 1/1 Cost of Goods Available Finished Goods 12/31 Cost of Goods Sold Gross Profit Operating Expenses Net Operating Income Case 1 $36,000 $12,000 $78,000 $12,000 $66,000 $180,000 $42,000 $78,000 $54,000 Case 2 $5,000 $6,000 $21,000 $2,000 $33,000 $50,000 $9,000 $7,000 $10,000 a Calculate the unknown amounts for both Case 1 and 2 b For Case 1, compute the total prime costs for the year. c For Case 1, compute the total conversion costs for the year. d For Case 1, compute the average price per unit if the company sold 15,000 uni e For Case 1, compute the operating income per unit if the company sold 15,000 units f For Case 1, compute the POHR assuming Manufacturing overhead is applied based on DL cost g For Case 1, review beginning and ending work in process. As an auditor or manager what one question might you possibly have? h For Case 1, review beginning and ending finished goods inventory. As an auditor or manager what question might you possibly have? i For Case 1, review beginning and ending direct materials inventory. As an auditor or manager what question might you possibly have?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Direct Materials
Direct Labor
Manufacturing overhead
Total Manufacturing costs
Work-in-process 1/1
Work-in-process 12/31
Cost of goods
manufactured
Sales
Finished Goods 1/1
Cost of Goods Available
Finished Goods 12/31
Cost of Goods Sold
Gross Profit
Operating Expenses
Net Operating Income
Case 1
$36,000
$12,000
$78,000
$12,000
$66,000
$180,000
$42,000
$78,000
$54,000
Case 2
$5,000
$6,000
$21,000
$2,000
$33,000
$50,000
$9,000
$7,000
$10,000
a Calculate the unknown amounts for both Case 1 and 2
b For Case 1, compute the total prime costs for the year.
c For Case 1, compute the total conversion costs for the year.
d For Case 1, compute the average price per unit if the company sold 15,000 uni
e For Case 1, compute the operating income per unit if the company sold
15,000 units
f For Case 1, compute the POHR assuming Manufacturing overhead is applied
based on DL cost
g
For Case 1, review beginning and ending work in process. As an auditor or
manager what one question might you possibly have?
h For Case 1, review beginning and ending finished goods inventory. As an
auditor or manager what question might you possibly have?
i For Case 1, review beginning and ending direct materials inventory. As an
auditor or manager what question might you possibly have?
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