The following is extracted from the records of a manufacturing company for last year: £Sales600,000Inventory of direct materials as of 1st of January39,000Purchases of direct materials158,000Inventory of direct materials as of 31st of December19,000Direct manufacturing labour28,000Indirect manufacturing costs45,000Inventory of finished goods as of 1st of January47,000Cost of goods manufactured121,000Inventory of finished goods as of 31st of December33,000Selling and administrative costs119,000 What is the company’s operating income? a.£177,000 b.None of the above c.£346,000 d.£95,000

Operating Income = Gross Profit - Selling and Administrative expenses Gross Profit = Sales - Cost…

Answered: The following is extracted from 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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Using $3,040, 000 as the cost of goods manufactured, compute the cost of goods sold using the following information. Raw materials inventory, January 1 $ 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 18, 000 Work in process, December 31 12,000 Finished goods, January 1 45,000 Finished goods, December 31 31,000 Raw materials purchases 1, 700,000 Direct labor 760, 000 Factory utilities 150, 000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000
Cost Flow Relationships The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Sales $1,054,900 Gross profit 284,800 Indirect labor 94,900 Indirect materials 39,000 Other factory overhead 17,900 Materials purchased 538,000 Total manufacturing costs for the period 1,164,600 39,000 Materials inventory, end of period Using the above information, determine the following amounts: a. Cost of goods sold b. Direct materials cost c. Direct labor cost
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 217,000 Purchases of raw materials $ 265,000 Direct labor ? Administrative expenses $ 155,000 Manufacturing overhead applied to work in process $ 371,000 Actual manufacturing overhead cost $ 352,000 Inventory balances at the beginning and end of the year were as follows: Beginning Ending Raw materials $ 50,000 $ 35,000 Work in process ? $ 28,000 Finished goods $ 32,000 ? The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $666,000; and the net operating income was $32,000. The company’s underapplied or overapplied overhead is closed to Cost of Goods Sold. Required: Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint:…
The following data (in thousands of dollars) has been taken from the accounting records of Lanyard Corporation for the year just completed: Sales Purchases of raw materials Direct labour Manufacturing overhead Administrative expenses Selling expenses Raw materials inventory, beginning Raw materials inventory, ending Work-in-process inventory, beginning Work-in-process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending $870 $110 $130 $200 $160 $140 $30 $60 $50 $10 $150 $140 a) Prepare a schedule of cost of goods manufactured in good form b) Compute the cost of goods sold c) Using data from your answers above as needed, prepare an income statement in good form
The following data from the just completed year are taken from the accounting records of Mason Company: Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs $659,000 $ 87,000 $133,000 $103,000 $ 43,000 $225,000 $202,000 Inventories Raw materials Work in Beginning Ending $ 8,500 $10,500 $ 5,600 $20, 800 Finished goods $73,000 $25,400 process Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement. Complete this question by entering your answers in the tabs below. Required Required Required Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. Mason Company Schedule…
During the year, a manufacturing company had the following operating results: Beginning work-in-process inventory $ 45,000 Beginning finished goods inventory $ 190,000 Direct materials used in production $ 308,000 Direct labor $ 475,000 Manufacturing overhead incurred $ 250,000 Ending work-in-process inventory $ 67,000 Ending finished goods inventory $ 89,000 What is the cost of goods manufactured for the year? $1,112,000 $1,033,000 $1,011,000 $1,134,000
At the beginning of the current year, Grant Company’s work in process inventory account had a balance of $30,000. During the year, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Factory overhead for the year amounted to $90,000. Cost of goods manufactured is $230,000. The balance in work in process inventory on December 31 is a.$66,000 b.$24,000 c.$44,000 d.$36,000
The following data was taken from the general ledger and other records of Vanderbeck Manufacturing Co. at January31, the end of the first month of operations in the current fiscal year: Sales Inventories at January 1: $650,000 Materials inventory 25,000 Work in process inventory 29,000 Finished goods inventory 48,000 Inventories at January 31: Materials inventory 20,000 Work in process inventory 32,000 Finished goods inventory 54,000 Materials purchased 154,000 Labor Costs: 185,000 30,000 Assembly workers' wages Supervisors' salaries Sales personnel salaries 52,000 Depreciation: Factory building 73,000 Sales office 28,000 Indirect materials used 3,000 Factory utilities 67,000 Determine the cost of goods sold for the month
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost Inventory balances at the beginning and end of the year were as follows: Ending $ 38,000 $ 33,000 ? Raw materials in process Finished goods Beginning $ 54,000 ? $ 33,000 $ 217,000 $ 264,000 ? $152,000 $368,000 $ 353,000 The total manufacturing costs added to production for the year were $675,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $661,000; and the net operating income was $35,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Required: Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost…
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 140,000 Purchases of raw materials $ 290,000 Direct labor ? Administrative expenses $ 100,000 Manufacturing overhead applied to work in process $ 285,000 Actual manufacturing overhead cost $ 270,000 Inventory balances at the beginning and end of the year were as follows: Beginning Ending Raw materials $ 40,000 $ 10,000 Work in process ? $ 35,000 Finished goods $ 50,000 ? The total manufacturing costs added to production for the year were $683,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $660,000; and the net operating income was $30,000. The company’s underapplied or overapplied overhead is closed to Cost of Goods Sold. Required: Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint:…
The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 658,000 Direct labor cost $ 87,000 Raw material purchases $ 130,000 Selling expenses $ 106,000 Administrative expenses $ 42,000 Manufacturing overhead applied to work in process $ 229,000 Actual manufacturing overhead costs $ 205,000 Inventories Beginning Ending Raw materials $ 8,100 $ 10,200 Work in process $ 6,000 $ 20,500 Finished goods $ 74,000 $ 25,700 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement.
The accounting records of NuTronics, Inc., include the following information for the year ended December 31. Dec. 31 Jan. 1 Inventory of materials $ 24,000 $ 20,000 Inventory of work in process 8,000 12,000 Inventory of finished goods 90,000 80,000 Direct materials used 210,000 Direct labor 120,000 Selling expenses 170,000 General and administrative expenses 140,000 Overhead assigned to production was $192,000. Assume that the company manufactures a single product and that 20,000 units were completed during the year. What is the average per-unit cost of manufacturing this product?

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	£
Sales	600,000
Inventory of direct materials as of 1^st of January	39,000
Purchases of direct materials	158,000
Inventory of direct materials as of 31^st of December	19,000
Direct manufacturing labour	28,000
Indirect manufacturing costs	45,000
Inventory of finished goods as of 1^st of January	47,000
Cost of goods manufactured	121,000
Inventory of finished goods as of 31^st of December	33,000
Selling and administrative costs	119,000

	a.	£177,000
	b.	None of the above
	c.	£346,000
	d.	£95,000