Problem# 2 MJE Sporting Goods Company manufactured 100,000 units in 2022 and reported the following costs: Factory Utilities Coolants & lubricants - factory equipment Indirect manufacturing labor Direct manufacturing labor Direct materials, 1/1/22 Finished goods, 1/1/22 Finished goods, 12/31/22 Work-in-process, 1/1/22 Work-in-process, 12/31/22 Leasing costs - plant Depreciation factory equipment Property taxes Fire insurance Direct material purchases Direct materials, 12/31/22 factory equipment factory equipment Sales revenue Sales commissions Sales salaries Advertising costs Administration costs Required: a. What is the amount of direct materials used during 2022? 352,000 22,400 275,200 2,176,000 384,000 672,000 1,280,000 96,000 64,000 384,000 224,000 32,000 16,000 3,136,000 275,200 12,800,000 640,000 576,000 480,000 800,000 b. What manufacturing costs were added to WIP during 2022? c. Compute for the manufacturing overhead. c. What is cost of goods manufactured for 2022? d. What is cost of goods sold for 2022? e. How much is the net income of MJE Sporting Goods Company? f. How much should be reported as Inventory in the Statement of Financial Position?

Problem# 2 MJE Sporting Goods Company manufactured 100,000 units in 2022 and reported the following costs: Factory Utilities Coolants & lubricants - factory equipment Indirect manufacturing labor Direct manufacturing labor Direct materials, 1/1/22 Finished goods, 1/1/22 Finished goods, 12/31/22 Work-in-process, 1/1/22 Work-in-process, 12/31/22 Leasing costs - plant Depreciation factory equipment Property taxes Fire insurance Direct material purchases Direct materials, 12/31/22 factory equipment factory equipment Sales revenue Sales commissions Sales salaries Advertising costs Administration costs Required: a. What is the amount of direct materials used during 2022? 352,000 22,400 275,200 2,176,000 384,000 672,000 1,280,000 96,000 64,000 384,000 224,000 32,000 16,000 3,136,000 275,200 12,800,000 640,000 576,000 480,000 800,000 b. What manufacturing costs were added to WIP during 2022? c. Compute for the manufacturing overhead. c. What is cost of goods manufactured for 2022? d. What is cost of goods sold for 2022? e. How much is the net income of MJE Sporting Goods Company? f. How much should be reported as Inventory in the Statement of Financial Position?

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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