The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $168,500 of materials. b. Used $149,250 of direct materials in production. c. Incurred $360,000 of direct labor wages. d. Incurred $120,000 of factory overhead. e. Transferred $600,000 of work in process to finished goods. f. Sold goods for $875,000. g. Sold goods with a cost of $525,000. h. Incurred $125,000 of selling expense. i. Incurred $80,000 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Digital Vibe Manufacturing Company. Digital Vibe Manufacturing Company Income Statement For the Month Ended January 31 $ Revenues Cost of goods sold Gross profit ▼ Operating expenses: Selling expenses Administrative expenses Total operating expenses Net income 125,000 80,000 $ 145,000

The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $168,500 of materials. b. Used $149,250 of direct materials in production. c. Incurred $360,000 of direct labor wages. d. Incurred $120,000 of factory overhead. e. Transferred $600,000 of work in process to finished goods. f. Sold goods for $875,000. g. Sold goods with a cost of $525,000. h. Incurred $125,000 of selling expense. i. Incurred $80,000 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Digital Vibe Manufacturing Company. Digital Vibe Manufacturing Company Income Statement For the Month Ended January 31 $ Revenues Cost of goods sold Gross profit ▼ Operating expenses: Selling expenses Administrative expenses Total operating expenses Net income 125,000 80,000 $ 145,000

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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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?
The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: Purchased 480,000 of materials. Used 434,500 of direct materials in production. Incurred 125,000 of direct labor wages. Applied factory overhead at a rate of 40% of direct labor cost. Transferred 578,000 of work in process to finished goods. Sold goods with a cost of 550,000. Revenues earned by selling bikes, 910,000. Incurred 185,000 of selling expenses. Incurred 90,000 of administrative expenses. a. Prepare the income statement for Rushmore Biking for the month ending February 28. b. Determine the inventory balances on February 28, the end of the first month of operations.
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. 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, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
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The following events took place for Digital Vibe Manufacturing Company during March, the first month of its operations as a producer of digital video monitors: A. Purchased $168,500 of materials. B. Used $149,250 of direct materials in production. C. Incurred $360,000 of direct labor wages. D. Incurred $120,000 of factory overhead. E. Transferred $600,000 of work in process to finished goods. F. Sold goods for $875,000. G. Sold goods with a cost of $525,000. H. Incurred $125,000 of selling expense. I. Incurred $80,000 of administrative expense. Using the information given, complete the following: A. Prepare the March income statement for Digital Vibe Manufacturing Company. B. Determine the inventory balances at the end of the first month of operations.
The following events took place for Technology Treasures Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: Purchased $142,900 of materials. Used $126,600 of direct materials in production. Incurred $305,300 of direct labor wages. Incurred $101,800 of factory overhead. Transferred $508,800 of work in process to finished goods. Sold goods for $742,000. Sold goods with a cost of $445,200. Incurred $106,000 of selling expense. Incurred $67,800 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Technology Treasures Manufacturing Company. Technology Treasures Manufacturing CompanyIncome StatementFor the Month Ended January 31 $- Select - - Select - $- Select - Operating expenses: $- Select - - Select - Total operating expenses fill in the blank d8e826037053ff3_11 $- Select -…
The following events took place for Technology Treasures Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: Purchased $142,900 of materials. Used $126,600 of direct materials in production. Incurred $305,300 of direct labor wages. Incurred $101,800 of factory overhead. Transferred $508,800 of work in process to finished goods. Sold goods for $742,000. Sold goods with a cost of $445,200. Incurred $106,000 of selling expense. Incurred $67,800 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Technology Treasures Manufacturing Company. Technology Treasures Manufacturing Company Income Statement For the Month Ended January 31 Revenues $fill in the blank 3beb37fd1fe4fa1_2 Cost of goods sold fill in the blank 3beb37fd1fe4fa1_4 Gross profit $fill in the blank 3beb37fd1fe4fa1_6 Operating expenses: Selling expenses…
The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: Purchased $430,000 of materials. Used $389,200 of direct materials in production. Incurred $112,000 of direct labor wages. Applied factory overhead at a rate of 35% of direct labor cost. Transferred $512,500 of work in process to finished goods. Sold goods with a cost of $487,700. Revenues earned by selling bikes, $806,900. Incurred $164,100 of selling expenses. Incurred $79,800 of administrative expenses. Prepare the income statement for Rushmore Biking for the month ending February 28. Round your answers to the nearest dollar. Determine the inventory balances on February 28, the end of the first month of operations. Round your answers to the nearest dollar. Materials inventory, February 28 $fill in the blank 15 Work in process inventory, February 28 $fill in the blank 16 Finished goods inventory, February 28
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.