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use T-accounts

use T-accounts

FINANCIAL ACCOUNTING
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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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
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
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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