P16 • MANUFACTURING ACCOUNTING (MFG)LEARNING OBJECTIVESPrepare a schedule of cost of goods manufactured and sold.• Calculate changes in labor cost needed to achieve production goals.Alter the worksheet to include an income statement for a manufacturing firm.Create a chart showing the dollar amount of materials, labor, and overhead.PROBLEM DATAThe following information is for Twisp Industries for the year ended December 31, 2011:Depreciation-equipment$ 180,000Direct labor2,568,000Direct materials inventory, 1/1/11366,000Direct materials inventory, 12/31/11372,000Factory rent305,640Finished goods, 1/1/11528,000Finished goods, 12/31/11690,000Indirect labor150,000Indirect materials105,000Purchases of direct materials2,580,720Work in process, 1/1/11121,200Work in process, 12/31/11114,660REQUIREMENT1. You have been asked to prepare a schedule of cost of goods manufactured and sold for theyear just ended. Review the worksheet MFG that follows these requirements.2. Open the file MFG from the website for this book at cengagebrain.com. Enter the formulasand titles where requested on the worksheet. The cells that contain zeros now will change tononzero values as formulas are entered. Enter your name in cell A1. Save the file as MFG2.Print the worksheet when done. Also print your formulas. Check figure: Cost of goods sold(cell D46), $5,727,900.

Answered: P16 • MANUFACTURING ACCOUNTING (MFG)…

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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P16 • MANUFACTURING ACCOUNTING (MFG)
LEARNING OBJECTIVES
Prepare a schedule of cost of goods manufactured and sold.
• Calculate changes in labor cost needed to achieve production goals.
Alter the worksheet to include an income statement for a manufacturing firm.
Create a chart showing the dollar amount of materials, labor, and overhead.
PROBLEM DATA
The following information is for Twisp Industries for the year ended December 31, 2011:
Depreciation-equipment
$ 180,000
Direct labor
2,568,000
Direct materials inventory, 1/1/11
366,000
Direct materials inventory, 12/31/11
372,000
Factory rent
305,640
Finished goods, 1/1/11
528,000
Finished goods, 12/31/11
690,000
Indirect labor
150,000
Indirect materials
105,000
Purchases of direct materials
2,580,720
Work in process, 1/1/11
121,200
Work in process, 12/31/11
114,660
REQUIREMENT
1. You have been asked to prepare a schedule of cost of goods manufactured and sold for the
year just ended. Review the worksheet MFG that follows these requirements.
2. Open the file MFG from the website for this book at cengagebrain.com. Enter the formulas
and titles where requested on the worksheet. The cells that contain zeros now will change to
nonzero values as formulas are entered. Enter your name in cell A1. Save the file as MFG2.
Print the worksheet when done. Also print your formulas. Check figure: Cost of goods sold
(cell D46), $5,727,900.

Expert Solution

Step 1

Cost of good manufactured and sold

DECEMBER 31,2011

Direct materials			366,000
direct materials inventory	366,000 Fo		formula1
add:title A			value1
Cost of direct materials used			formula 3
direct labor			2568000
manufacturing overheads
factory rent	305640
TITLE C	formula4
TITLE D	formula5
TITLE E	formula6		305,640
TOTAL MANUFACTURING OVERHEADS			formula7
WORK IN PROCESS 1/1			121,200
TOTAL WORK IN PROCESS AVAILABLE			value
Less:title F		formula8
COST OF GOOD MANUFACTURED		formula9
TITLE G		formula10
Cost of goods available for sale		formula11
less:finished goods		690000
title h		formula12

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