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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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?
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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