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(A)
Concept Introduction:
Cost of goods manufactured is the total cost of direct raw materials used, direct labor used and manufacturing
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.
Requirement 2:
The average cost per unit of product manufactured.
(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
(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.
(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
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Chapter 13 Solutions
Accounting: What the Numbers Mean
- Torre Corporation incurred the following transactions. 1. Purchased raw materials on account $46,300. 2. Raw Materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. 3. Factory labor costs incurred were $55,900, of which $51,000 pertained to factory wages payable and $4,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $50,000 was direct labor and $5,900 was indirect labor. 5. Overhead costs incurred on account were $80,500. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $88,000 were completed and transferred to finished goods. 8. Finished goods costing $75,000 to manufacture were sold on account for $103,000. Instructions Journalize the transactions.arrow_forwardChapter 15 Assignment of direct materials, direct labor and manufacturing overhead Stine Company uses a job order cost system. During May, a summary of source documents reveals the following. Job Number Materials Requisition Slips Labor Time Tickets 429 430 $2,500 3,500 $1,900 3,000 431 4,400 $10,400 7,600 $12,500 General use 800 1,200 $11,200 $13,700 Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Instructions Prepare summary journal entries to record (i) the requisition slips, (ii) the time tickets, (iii) the assignment of manufacturing overhead to jobs,arrow_forwardSolve accarrow_forward
- Solve fastarrow_forwardAssume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Crane can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct materials Direct labor Variable overhead 1A Fixed overhead Opportunity cost Purchase price Totals Make A Buy $ SA Net Income Increase (Decrease) $ Based on the above assumptions, indicate whether the offer should be accepted or rejected? The offerarrow_forwardThe following is a list of balances relating to Phiri Properties Ltd during 2024. The company maintains a memorandum debtors and creditors ledger in which the individual account of customers and suppliers are maintained. These were as follows: Debit balance in debtors account 01/01/2024 66,300 Credit balance in creditors account 01/01/2024 50,600 Sunday credit balance on debtors ledger Goods purchased on credit 724 257,919 Goods sold on credit Cash received from debtors Cash paid to suppliers Discount received Discount allowed Cash purchases Cash sales Bad Debts written off Interest on overdue account of customers 323,614 299,149 210,522 2,663 2,930 3,627 5,922 3,651 277 Returns outwards 2,926 Return inwards 2,805 Accounts settled by contra between debtors and creditors ledgers 1,106 Credit balances in debtors ledgers 31/12/2024. 815 Debit balances in creditors ledger 31/12/2024.698 Required: Prepare the debtors control account as at 31/12/2024. Prepare the creditors control account…arrow_forward
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