Answered: The following information is for the…

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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1. The following information is for the Furbee Manufacturing Company for November. Inventories Beginning Ending Raw Material P19,750 P15,400 Work in Process 35,350 32,200 Finished Goods 21,300 27,900 Direct Labor (22,000 DLH @ P14) Raw Material Purchases P155,000 Insurance-Office 2,750 Indirect Labor 11,600 Office Supplies Expense 1,050 Factory Supplies Used 475 Insurance-Factory 1,825 Other Expenses: Depr. Office Equipment 3,900 Depr.-Factory Equipment 18,100 Repair/MaintenanceFactory 7,800 Prepare a statement of Cost of Goods Manufactured and a statement of Cost of Goods Sold in good form. 2. The following information was taken from the records of the Slidell Corporation for the month of July. (There were no inventories of work in process or finished goods on July 1.) Units Cost Sales during month 8,000 P ? Manufacturing costs for month: Direct material 32,000 Direct labor 20,000 Overhead costs applied 15,000 Overhead costs under-applied 800 Inventories, July 31: Work in process 1,000 ? Finished goods 2,000 ? Indirect manufacturing costs are applied on a direct labor cost basis. The under-applied balance is due to seasonal variations and will be carried forward. The following cost estimates have been submitted for the work in process inventory of July 31: material, P3,000; direct labor, P2,000. Required: a. Determine the number of units that were completed and transferred to finished goods during the month. b. Complete the estimate of the cost of work in process on July 31. c. Compute cost of goods manufactured for the month.d. Determine the cost of each unit completed during the month. e. Determine the total amount debited to the Overhead Control accounts during the month. 3. Classify the following costs of activity inputs as variable, fixed or mixed. a. Flu vaccine b. Salaries, Equipment, and materials used for moving materials in a factory c. Forms use to file insurance claims d. Salaries, forms, and postage associated with purchasing e. Printing and postage for advertising circulars f. Equipment, labor, and parts used to repair and maintain production equipment g. Power to operate sewing machines in a clothing factory h. Wooden cabinets enclosing audio speakers

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