use T-accounts
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...
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use T-accounts
![Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. During the month
of March, 8,100 coffee makers were completed at a cost of goods manufactured of $607,500. Suppose
that on March 1, Morning Smiles had 1,000 units in finished goods inventory costing $70,000 and on
March 31, 1,100 units in finished goods inventory costing $65,000.
1. Prepare a cost of goods sold statement for the month of March.
2. Calculate the number of coffee makers that were sold during March.
Amount $
COGM
607,500
Add: FG Opening 70,000
Less: FG Closing
65,000
COGS
612,500
Units
FG June 1
1,000
Finished in June
8,100
Less: FG June 30
1,100
Units Sold June
8,000
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Transcribed Image Text:Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. During the month
of March, 8,100 coffee makers were completed at a cost of goods manufactured of $607,500. Suppose
that on March 1, Morning Smiles had 1,000 units in finished goods inventory costing $70,000 and on
March 31, 1,100 units in finished goods inventory costing $65,000.
1. Prepare a cost of goods sold statement for the month of March.
2. Calculate the number of coffee makers that were sold during March.
Amount $
COGM
607,500
Add: FG Opening 70,000
Less: FG Closing
65,000
COGS
612,500
Units
FG June 1
1,000
Finished in June
8,100
Less: FG June 30
1,100
Units Sold June
8,000
ero.com
ce was
![Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. On March 1,
Morning Smiles had $25,000 of materials in inventory. During the month of March, the company
purchased $350,000 of materials. On March 31, materials inventory equaled $40,000.
1. Calculate the direct materials used in production for the month of March.
25,000+350,000-40,000=$335,000
Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. During the month
of March, the company purchased $350,000 of materials. Also during the month of March, Morning
Smiles incurred direct labor cost of $74,000 and manufacturing overhead of $190,000. Inventory
information is as follows:
A stuce
March 1
March 31
Materials
$25,000
$40,000
Work in process
55,000
46,500
1. Calculate the cost of goods manufactured for the month of June.
335,000+74,000+190,000+55,000-46,500=607,500
2. Calculate the cost of one coffee maker assuming that 8,100 coffee makers were completed
during June.
607,500/8,100=$75](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff326d7f6-07f3-4f16-b38f-4ec97c714e2c%2F0a98f68a-2378-474c-a621-fc2c1786f0ef%2Fc7p8ftm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. On March 1,
Morning Smiles had $25,000 of materials in inventory. During the month of March, the company
purchased $350,000 of materials. On March 31, materials inventory equaled $40,000.
1. Calculate the direct materials used in production for the month of March.
25,000+350,000-40,000=$335,000
Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. During the month
of March, the company purchased $350,000 of materials. Also during the month of March, Morning
Smiles incurred direct labor cost of $74,000 and manufacturing overhead of $190,000. Inventory
information is as follows:
A stuce
March 1
March 31
Materials
$25,000
$40,000
Work in process
55,000
46,500
1. Calculate the cost of goods manufactured for the month of June.
335,000+74,000+190,000+55,000-46,500=607,500
2. Calculate the cost of one coffee maker assuming that 8,100 coffee makers were completed
during June.
607,500/8,100=$75
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