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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Wildhorse Corporation incurred the following costs while manufacturing its product. Materials used in product $127,700 Advertising expense $48,000 Depreciation on plant 63,100 Property taxes on plant 15,000 Property taxes on store 7,740 Delivery expense 25,000 Labor costs of assembly-line workers 116,700 Sales commissions 36,000 Factory supplies used 29,600 Salaries paid to sales clerks 58,100 Work in process inventory was $14,700 at January 1 and $17,400 at December 31. Finished goods inventory was $63,200 at January 1 and $45,900 at December 31. (a) Compute cost of goods manufactured. Cost of goods manufactured $
McNeil, inc manufactures and sells guitars. During June, McNeil started and completed the production of 300 guitars. McNeil engaged in the following transaction in june: A) Paid $68,000 for materials that were used to make guitars in June. B) Paid $94,000 wages to production workers C) Recorded $34,000 of depreciation on factory equipment D) Sold 260 guitars on account in June for $900 each. Mcneil recorded the cost of goods sold at the time of sale. Required: record the above transactions using the horizontal financial statements model. Be sure to identify the specific accounts affected by the transaction.
The Company manufactures furniture at its New York factory. Some of its costs from the past year include: Depreciation on sales office $ 9,700 Depreciation on factory equipment 16,600 Factory supervisor salary 50,200 Sales commissions 23,600 Lubricants used in factory equipment 3,000 Insurance costs for factory 21,400 Wages paid to maintenance workers 115,400 Fabric used to upholster furniture 10,800 Freight-in (on raw materials) 3,600 Costs of delivery to customers 9,000 Wages paid to assembly-line workers 115,600 Lumber used to build product 82,200 Utilities in factory 54,800 Utilities in sales office 26,100 Direct material costs for The Company totaled
Baird Watches, Incorporated makes watches. Its assembly department started the accounting period with a beginning inventory balance of $25,500. During the accounting period, the department incurred $45,000 of transferred-in cost, $24,000 of materials cost, $68,000 of labor cost, and $40,450 of applied overhead cost. The department processed 6,150 total equivalent units of product during the accounting period. Required (Each requirement is independent of the other.) a. Assuming that 1,300 equivalent units of product were in the ending work in process inventory, determine the amount of cost transferred out of the Work in Process Inventory account of the assembly department to the Finished Goods Inventory account. What was the assembly department's cost of ending work in process inventory? b. Assuming that 5,600 units of product were transferred out of the assembly department's work in process inventory to finished goods inventory, determine the amount of the assembly department's cost of…
Primare Corporation has provided the following data concerning last month’s manufacturing operations. Purchases of raw materials $ 31,000 Indirect materials used in production $ 4,740 Direct labor $ 58,800 Manufacturing overhead applied to work in process $ 87,200 Underapplied overhead $ 4,180 Inventories Beginning Ending Raw materials $ 10,700 $ 19,500 Work in process $ 55,900 $ 65,700 Finished goods $ 34,600 $ 44,000 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.
Road Warrior Corporation began operations early in the current year, building luxury motor homes. During the year, the company started and completed 50 motor homes at a cost of $60,000 per unit. Of these, 48 were sold for $95,000 each and two remain in finished goods inventory. In addition, the company had six partially completed units in its factory at year-end. Total costs for the year (summarized alphabetically) were as follows: $ 737,000 900,000 Direct materials used Direct labor General and administrative 500,000 expenses Income tax expense Manufacturing overhead Selling expenses 100,000 1,520,000 500,000 Instructions a. Compute the total manufacturing costs charged to work in process for the current year: Total manufacturing costs b. Compute the cost of finished goods manufactured for the current year: Cost of finished goods manufactured
During March of the current year, Rolly Company purchased P3,500,000 raw materials. During the month, Reyes incurred P2,040,000 direct labor cost and applied 80% of direct labor cost. During the same month, there were changes in inventories as follows: Increase in raw materials P100,000; Decrease in work in process P150,000 and decrease in finished goods 75,000. If the goods available for sale is P7,500,000, what is the amount of finished goods at March 1? a.P203,000 b.P278,000 c.P 0 d.P 75,000
The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: • Purchased $396,010 of materials. • Used $340,050 of direct materials in production. • Incurred $294,400 of direct labor wages. • Applied factory overhead at a rate of 76% of direct labor cost. • Transferred $812,120 of work in process to finished goods. • Sold goods with a cost of $791,220. • Sold goods for $1,404,390. • Incurred $316,650 of selling expenses. • Incurred $126,730 of administrative expenses. Required: a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. 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 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…
In October of the same year, Mannequin Fabrics, which started 35,000 units, had initial material inventories of $62,100 and had a final materials inventory of 6,900 units. Now, the initial inventory of products-in-process had 12,300 units, valued at $251,000 contains materials valued at $123,000, labor of $96,000 and S32,000 overhead cost right. The final inventory of finished products is valued at $84,000. The final inventory of work-in-progress and initial finished goods inventories are zero. There were no changes in costs of resources used in production What would be the final balance of material inventories? XWhat would be the final balance of inventories of products-in-process corresponding to October? What would be the balance of purchases made in October? What would be the cost of the finished items in October? YHow many units were sold in October?
During December of the current year, Parker Company purchased $3,500,000 raw materials. During the month, Parker incurred $2,040,000 direct labor cost and applied 80% of direct labor cost. During the same month, there were changes in inventories as follows: Increase in raw materials $100,000; Decrease in work in process $150,000 and decrease in finished goods $75,000. If the goods available for sale is $7,500,000, what is the value of finished goods at December 31? $203,000 $578,000 $78,000 $75,000
Dani Corp incurred costs of P50,000 for direct materials (raw) purchased. Direct labor was P60,000 and factory overhead was P35,000 for May. Inventories were as follows: Raw materials beginning P14,000; raw materials ending P10,000 Work-in-process beginning 24,000; work-in-process ending 36,000 Finished goods beginning 10,000; finished goods ending 25,000 Required: Calculate the cost of goods manufactured for May