Exercise 11-2A (Algo) Materials and compensation costs in manufacturing versus service companies LO11-1Vernon Company started year 1 with $315,000 in its cash and common stock accounts. During year 1, Vernon paid $236,250 cash foremployee compensation and $72,450 cash for materials.Requireda. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Vernon usedthe labor and materials to make 1,500 chairs. Further, assume that Vernon sold 1,200 of the chairs It made. State the name of theexpense account(s) shown on the income statement.b. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Vernon usedthe labor and materials to provide dental cleaning services to 500 patients. State the name of the expense account(s) shown on theincome statement.Complete this question by entering your answers in the tabs below.Required A Required BDetermine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Vernonused the labor and materials to make 1,500 chairs. Further, assume that Vernon sold 1,200 of the chairs it made. State thename(s) of the expense account shown on the income statement.

The expenses incurred by an employer to provide benefits to an employee when the employee is unable…

Answered: Exercise 11-2A (Algo) Materials and…

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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Exercise 10-6A (Algo) Identifying product versus SG&A costs LO 10-2, 10-3 A review of the accounting records of Zachary Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$32,800. 2. Salary of the vice president of manufacturing-$15,100. 3. Salary of the chief financial officer-$17,900. 4. Salary of the vice president of marketing-$15,000. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$189,000. 6. Wages of production workers-$945,000. 7. Salaries of administrative personnel-$111,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$169,000. 9. Commissions paid to sales staff-$245,000. Required a. What amount of payroll cost would be classified as SG&A (selling, general, and administrative) expense? b. Assuming that Zachary…
COST OF GOODS MANUFACTURED AND SOLD STATEMENTS AND NET INCOME OR LOSS PROBLEM 2-5 The Stiff Shirt Company has just completed its third year of operation. Sales for the year were $1,300,000, and inventories were as follows: DECEMBER 31 JANUARY 1 Raw materials inventory Work-in-process inventory Finished goods Inventory -0- $100,000 64,000 -0- $95,000 76,000 Costs for the period were as follows: Direct materials... $365,000 Direct labor Factory overhead 405,000 445,500 ..... Selling expenses were $26,000. General and administrative expenses were $82,000. Required: a Prepare the following statements: 1 Cost of goods manufactured 2 Cost of goods sold b Compute the net income or loss.
Exercise 3-3 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold [LO3-3] Primare Corporation has provided the following data concerning last month's manufacturing operations. Purchases of raw materials Indirect materials used in production Direct labor Manufacturing overhead applied to work in process Underapplied overhead Inventories Raw materials Work in process Finished goods Beginning Ending $ 11,600 $ 18,600 $ 54,600 $ 66,700 $ 33,300 $ 42,600 $ 30,000 $ 4,530 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold. Required 1 Required 2 $ 59,100 $ 88,500 $ 4,080 Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods manufactured for the month.
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Question 4₁ From the information given below, calculate the prime cost, production overhead costs and total production costs per month. Details work 1. Production manager's salary 2. Wages of employees (60% is direct labour) 3. Production royalties: RM3 per unit 4. Transport costs on raw materials purchased 5. Rental of computer system for production control 6. Depreciation: Plant and Machinery 7. Bank Interest on financing 8. Salesmen's salaries and commission 9. Travelling expenses 10. Other factory indirect expenses 11. Salary of store clerks RM 3,000 10,000 3,000 1,000 10,000 15,000 1,000 10,000 2,000 10,000 5,000
Exercise 3-3 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold [LO3-3] Primare Corporation has provided the following data concerning last month's manufacturing operations. Purchases of raw materials $ 32,000 Indirect materials used in production $ 4,870 Direct labor Manufacturing overhead applied to work in process Underapplied overhead Inventories Raw materials Work in process Finished goods Beginning Ending $ 10,600 $ 18,000 $ 55,100 $ 68,200 $ 34,900 $ 43,500 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of cost of goods manufactured for the month. Primare Corporation Schedule of Cost of Goods Manufactured $ 59,100 $ 87,200 $ 4,010 Beginning work in process inventory Direct materials:…
20 EXERCISES Soved Prepare jourmal entries to record the following production activities for Hotwax. 1. Incurred $145,000 of direct labor in its Mixing department and $70,000 of direct labor in its Shapi Wages Payable). 2 Incured indirect labor of $11,500 (credit Factory Wages Payable). 3. Total factory payroll of $226,500 was paid in cash. View transaction list Journal entry worksheet 1 Record direct labor used, but not yet paid. Note: Enter debits before credits. Transaction General Journal Debit Credit Work in process inventory-Shaping 70,000 Work in process inventory-Mixing < Prev 6 of 8 Next search 0 門

Required Information Exercise 3-31 Manufacturing Cost Flows (LO 3-2, 3-5, 3-6) [The following information applies to the questions displayed below.] Reimel Furniture Company, Inc., incurred the following costs during 20x2. Raw material used Direct labor During 20x2, manufacturing overhead of $180,000 was applied to production. Products costing $122,000 were finished, and products costing $132,000 were sold on account for $193,000. There were no purchases of raw material during the year. The beginning balances in the firm's inventory accounts are as follows: Exercise 3-31 Part 1 Raw material Work in process Finished goods Beg. Bal. Required: 1. Prepare T-accounts to show the flow of costs through the company's manufacturing accounts during 20x2. End. Bal. Beg. Bal. Beg. Bal End. Bal. Beg. Bal End. Ball $ 173,000 321,000 End. Bal. $ 225,000 18,000 32,000 Raw-Material Inventory Wages Payable Finished-Goode Inventory Accounts Receivable Beg. Bal. Direct material Direct labor Manufacturing…

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