Chapter 13, Problem 13.28P

To determine

(A)

Concept Introduction:

Cost of goods manufactured is the total cost of direct raw materials used, direct labor used and manufacturing overhead. It is used to calculate the cost of producing a product.

Cost of goods sold is defined as the direct cost incurred to produce a product or service for its sale. These costs reduce the revenue of the business as it is incurred in creating the product.

Income statement is a financial statement which reflects the financial position of a company over a specific accounting period. It includes revenues, expenses and profit or loss during the given period of time.

Over applied or under applied overhead cost is the difference between total overhead cost actually incurred and the cost applied to production during the year.

Requirement 1:

The statement of cost of goods manufactured during the month of August.

To determine

Requirement 2:

The average cost per unit of product manufactured.

To determine

(B)

Concept Introduction:

Cost of goods manufactured is the total cost of direct raw materials used, direct labor used and manufacturing overhead. It is used to calculate the cost of producing a product.

Cost of goods sold is defined as the direct cost incurred to produce a product or service for its sale. These costs reduce the revenue of the business as it is incurred in creating the product.

Income statement is a financial statement which reflects the financial position of a company over a specific accounting period. It includes revenues, expenses and profit or loss during the given period of time.

Over applied or under applied overhead cost is the difference between total overhead cost actually incurred and the cost applied to production during the year.

The cost of goods sold during August for Buck & company is

To determine

(C)

Concept Introduction:

Cost of goods manufactured is the total cost of direct raw materials used, direct labor used and manufacturing overhead. It is used to calculate the cost of producing a product.

Cost of goods sold is defined as the direct cost incurred to produce a product or service for its sale. These costs reduce the revenue of the business as it is incurred in creating the product.

Income statement is a financial statement which reflects the financial position of a company over a specific accounting period. It includes revenues, expenses and profit or loss during the given period of time.

Over applied or under applied overhead cost is the difference between total overhead cost actually incurred and the cost applied to production during the year.

The difference between cost of goods manufactured and cost of goods sold and its reporting in financial statement.

To determine

(D)

Concept Introduction:

Cost of goods manufactured is the total cost of direct raw materials used, direct labor used and manufacturing overhead. It is used to calculate the cost of producing a product.

Cost of goods sold is defined as the direct cost incurred to produce a product or service for its sale. These costs reduce the revenue of the business as it is incurred in creating the product.

Income statement is a financial statement which reflects the financial position of a company over a specific accounting period. It includes revenues, expenses and profit or loss during the given period of time.

Over applied or under applied overhead cost is the difference between total overhead cost actually incurred and the cost applied to production during the year.

The traditional (Absorption) income statement for Buck & Company for the month of August