Number 1 An analysis of the accounts of Williams Company reveals the following manufacturing cost data for the month ended September 30, 2017 tad Beginning $12,000 7,500 10,000 Ending $11,300 5,000 12,000 ing May Inventories Raw materials Work in process Finished goods Costs incurred: raw materials purchases $62,500, direct labor $51,000, manufacturing overhead $25,650. The specific overhead costs were: indirect labor $6,500, factory insurance $5,000, machinery depreciation $6,000, machinery repairs $2,800, factory utilities $3,600, miscellaneous factory costs $1,750. Assume that all raw materials used were direct materials. Instructions (a) Prepare the cost of goods manufactured schedule for the month ended 9/30/17. cach (b) (b) (c) Show the presentation of the ending inventories on 9/30/17, Balance Sheet. dicate Williams Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in several changes in Williams' cost structure. Both direct labor and indirect labor would decrease by 40 %. Factory insurance would increase to $8,000, machinery depreciation would double, machinery repairs would decrease to $500, utilities would decrease to $2,500 and miscellaneou factory costs would increase to $1,850. Materials usage would remain at current levels. an (d Analy hours. 125 hou Analyze the new purchase by preparing a cost of goods manufactured schedule for September 30, 2017 using the new data. Should Williams Company make this purchase? Explain the factors that should be considered in the decision? (c)
Number 1 An analysis of the accounts of Williams Company reveals the following manufacturing cost data for the month ended September 30, 2017 tad Beginning $12,000 7,500 10,000 Ending $11,300 5,000 12,000 ing May Inventories Raw materials Work in process Finished goods Costs incurred: raw materials purchases $62,500, direct labor $51,000, manufacturing overhead $25,650. The specific overhead costs were: indirect labor $6,500, factory insurance $5,000, machinery depreciation $6,000, machinery repairs $2,800, factory utilities $3,600, miscellaneous factory costs $1,750. Assume that all raw materials used were direct materials. Instructions (a) Prepare the cost of goods manufactured schedule for the month ended 9/30/17. cach (b) (b) (c) Show the presentation of the ending inventories on 9/30/17, Balance Sheet. dicate Williams Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in several changes in Williams' cost structure. Both direct labor and indirect labor would decrease by 40 %. Factory insurance would increase to $8,000, machinery depreciation would double, machinery repairs would decrease to $500, utilities would decrease to $2,500 and miscellaneou factory costs would increase to $1,850. Materials usage would remain at current levels. an (d Analy hours. 125 hou Analyze the new purchase by preparing a cost of goods manufactured schedule for September 30, 2017 using the new data. Should Williams Company make this purchase? Explain the factors that should be considered in the decision? (c)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Number 1
An analysis of the accounts of Williams Company reveals the following manufacturing cost data
for the month ended September 30, 2017
tad
Beginning
$12,000
7,500
10,000
Ending
$11,300
5,000
12,000
ing May
Inventories
Raw materials
Work in process
Finished goods
Costs incurred: raw materials purchases $62,500, direct labor $51,000, manufacturing
overhead $25,650. The specific overhead costs were: indirect labor $6,500, factory insurance
$5,000, machinery depreciation $6,000, machinery repairs $2,800, factory utilities $3,600,
miscellaneous factory costs $1,750. Assume that all raw materials used were direct materials.
Instructions
(a)
Prepare the cost of goods manufactured schedule for the month ended 9/30/17.
cach
(b)
(b)
(c)
Show the presentation of the ending inventories on 9/30/17, Balance Sheet.
dicate
Williams Company is considering the purchase of a new automated assembly line for
its factory. The purchase would result in several changes in Williams' cost structure.
Both direct labor and indirect labor would decrease by 40 %. Factory insurance
would increase to $8,000, machinery depreciation would double, machinery repairs
would decrease to $500, utilities would decrease to $2,500 and miscellaneou
factory costs would increase to $1,850. Materials usage would remain at current
levels.
an
(d
Analy
hours. 125 hou
Analyze the new purchase by preparing a cost of goods manufactured schedule for
September 30, 2017 using the new data. Should Williams Company make this
purchase? Explain the factors that should be considered in the decision?
(c)
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