Financial Statements of a Manufacturing Firm The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes: • Purchased $365,400 of materials • Used $314,200 of direct materials in production • Incurred $272,000 of direct labor wages .. Applied factory overhead at a rate of 75% of direct labor cost • Transferred $758,600 of work in process to finished goods • Sold goods with a cost of $719,800 Sold goods for $1,288,400 . Incurred $309,500 of selling expenses • Incurred $115,200 of administrative expenses a. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Focault Inc.

Financial Statements of a Manufacturing Firm The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes: • Purchased $365,400 of materials • Used $314,200 of direct materials in production • Incurred $272,000 of direct labor wages .. Applied factory overhead at a rate of 75% of direct labor cost • Transferred $758,600 of work in process to finished goods • Sold goods with a cost of $719,800 Sold goods for $1,288,400 . Incurred $309,500 of selling expenses • Incurred $115,200 of administrative expenses a. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Focault Inc.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 14E: The following events took place for Rushmore Biking Inc. during February, the first month of...

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Glasson Manufacturing Co. produces only one product. You have obtained the following information from the corporations books and records for the current year ended December 31, 2016: a. Total manufacturing cost during the year was 1,000,000, including direct materials, direct labor, and factory overhead. b. Cost of goods manufactured during the year was 970,000. c. Factory Overhead charged to Work in Process was 75% of direct labor cost and 27% of the total manufacturing cost. d. The beginning Work in Process inventory, on January 1, was 40% of the ending Work in Process inventory, on December 31. e. Material purchases were 400,000 and the ending balance in Materials inventory was 60,000. No indirect materials were used in production. Required: Prepare a statement of cost of goods manufactured for the year ended December 31 for Glasson Manufacturing. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information.)
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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Financial Statements of a Manufacturing Firm The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes: • Purchased $267,400 of materials • Used $230,000 of direct materials in production • Incurred $196,000 of direct labor wages • Applied factory overhead at a rate of 75% of direct labor cost • Transferred $550,100 of work in process to finished goods • Sold goods with a cost of $532,100 • Sold goods for $952,500 • Incurred $228,800 of selling expenses • Incurred $85,100 of administrative expenses a. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Focault Inc. Income Statement For the Month Ended July 31, 20Y2 Selling and administrative expenses: Total selling and administrative expenses b. Determine the inventory balances at the end of the first month of operations. Materials inventory, July 31 Work in process inventory, July 31 Finished goods inventory, July 31
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $385,900 of materials. • Used $331,900 of direct materials in production. • Incurred $284,000 of direct labor wages. • Applied factory overhead at a rate of 80% of direct labor cost. • Transferred $809,400 of work in process to finished goods. • Sold goods with a cost of $771,800. • Revenues earned by selling bikes, $1,381,500. • Incurred $331,900 of selling expenses. • Incurred $123,500 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method. Rushmore Biking Inc. Income Statement For the Month Ended February 28 $ $ Selling and administrative expenses: $ Total selling and administrative…
Financial Statements of a Manufacturing Firm The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes: • Purchased $258,000 of materials Used $221,900 of direct materials in production • Incurred $192,000 of direct labor wages Applied factory overhead at a rate of 80% of direct labor cost • Transferred $544,800 of work in process to finished goods • Sold goods with a cost of $516,000 • Sold goods for $923,600 Incurred $221,900 of selling expenses Incurred $82,600 of administrative expenses . a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method. Migliozzi Inc. Income Statement For the Month Ended July 31 Selling and administrative expenses: Total selling and administrative expenses b. Determine the inventory balances at the end of the first month of operations. Materials inventory, July 31 Work in process inventory, July 31 Finished goods inventory, July 31
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $570,100 of materials. • Used $490,300 of direct materials in production. • Incurred $420,000 of direct labor wages. • Applied factory overhead at a rate of 80% of direct labor cost. • Transferred $1,196,400 of work in process to finished goods. • Sold goods with a cost of $1,128,800. • Revenues earned by selling bikes, $2,020,600. • Incurred $485,400 of selling expenses. • Incurred $180,600 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method.
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a p of road bikes: • Purchased $385,900 of materials. • Used $331,900 of direct materials in production. • Incurred $284,000 of direct labor wages. • Applied factory overhead at a rate of 80% of direct labor cost. • Transferred $809,400 of work in process to finished goods. • Sold goods with a cost of $771,800. • Revenues earned by selling bikes, $1,381,500. • Incurred $331,900 of selling expenses. • Incurred $123,500 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method. Rushmore Biking Inc. Income Statement For the Month Ended February 28 Selling and administrative expenses: $ Total selling and administrative expenses b. Determine the inventory balances on February 28, the end of the first month of…
Financial Statements of a Manufacturing Firm The following events took place for Rockhaven Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $392,000 of materials. • Used $337,100 of direct materials in production. • Incurred $292,000 of direct labor wages. Applied factory overhead at a rate of 80% of direct labor cost. Transferred $828,200 of work in process to finished goods. • Sold goods with a cost of $780,100. • Revenues earned by selling bikes, $1,396,400. Incurred $335,400 of selling expenses. • Incurred $124,800 of administrative expenses. ● ● . < a. Prepare the income statement for Rockhaven Biking Inc. for the month ending February 28. Rockhaven Biking Inc. Income Statement For the Month Ended February 28 Line Item Description Selling and administrative expenses: Amount Amount
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $509,100 of materials. • Used $437,800 of direct materials in production. • Incurred $376,000 of direct labor wages. • Applied factory overhead at a rate of 80% of direct labor cost. • Transferred $1,070,000 of work in process to finished goods. • Sold goods with a cost of $1,018,200. • Revenues earned by selling bikes, $1,822,600. • Incurred $437,800 of selling expenses. • Incurred $162,900 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method. Rushmore Biking Inc.Income StatementFor the Month Ended February 28 $- Select - - Select - $- Select - Selling and administrative expenses: blank blank $- Select…
Financial Statements of a Manufacturing Firm The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes: • Purchased $517,700 of materials Used $445,200 of direct materials in production • Incurred $384,000 of direct labor wages • Applied factory overhead at a rate of 80% of direct labor cost • Transferred $1,090,900 of work in process to finished goods • Sold goods with a cost of $1,035,400 • Sold goods for $1,853,400 • Incurred $445,200 of selling expenses • Incurred $165,700 of administrative expenses a. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Focault Inc. Income Statement For the Month Ended July 31, 20Y2 Revenues Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses 5,200 Administrative expenses 165,700 Total selling and administrative expenses 610,900 Income from operations
The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes: • Purchased $397,940 of materials • Used $343,700 of direct materials in production • Incurred $290,100 of direct labor wages • Applied factory overhead at a rate of 80% of direct labor cost • Transferred $813,970 of work in process to finished goods • Sold goods with a cost of $799,480 • Sold goods for $1,405,850 • Incurred $319,590 of selling expenses • Incurred $125,080 of administrative expenses Required: a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. b. Determine the inventory balances at the end of the first month of operations.