
Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
22nd Edition
ISBN: 9781259542169
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 3BPSB
Requirement-1:
To determine
To Prepare: The Schedule of Cost of Goods Manufactured
Requirement-1:
Expert Solution

Answer to Problem 3BPSB
Solution: The Schedule of Cost of Goods Manufactured is as follows:
Best Bikes | |||
Schedule of Cost of Goods Manufactured | |||
For the year 2015 | |||
Raw Material Used | $ 864,320 | ||
Direct Labor | $ 562,500 | ||
$ 35,400 | |||
Factory Supervision | $ 121,500 | ||
Factory Supplies used | $ 6,060 | ||
Factory Utilities | $ 37,500 | ||
Indirect Labor | $ 59,000 | ||
Misc. Production Costs | $ 8,440 | ||
Rent Expense-Factory Building | $ 93,500 | ||
Maintenance Expense- Factory Equipment | $ 30,375 | ||
Total Overhead Costs | $ 391,775 | ||
Total | $ 1,818,595 | ||
Work in process , December 31, 2014 | $ 12,500 | ||
Work in process , December 31, 2015 | $ 14,100 | ||
Cost of Goods Manufactured | $ 1,816,995 |
Explanation of Solution
Explanation: The Schedule of Cost of Goods Manufactured is prepared as follows:
Best Bikes | |||
Schedule of Cost of Goods Manufactured | |||
For the year 2015 | |||
Raw Material Purchases (A) | $ 894,375 | ||
Raw Materials, December 31, 2014 (B) | $ 40,375 | ||
Raw Materials, December 31, 2015 (C) | $ 70,430 | ||
Raw Material Used (D) = A+B-C | $ 864,320 | ||
Direct Labor (E) | $ 562,500 | ||
Overhead Costs: | |||
Depreciation Expense-Factory Equipment | $ 35,400 | ||
Factory Supervision | $ 121,500 | ||
Factory Supplies used | $ 6,060 | ||
Factory Utilities | $ 37,500 | ||
Indirect Labor | $ 59,000 | ||
Misc. Production Costs | $ 8,440 | ||
Rent Expense-Factory Building | $ 93,500 | ||
Maintenance Expense- Factory Equipment | $ 30,375 | ||
Total Overhead Costs (F) | $ 391,775 | ||
Total Manufacturing Cost (G) =D+E+F | $ 1,818,595 | ||
Work in process , December 31, 2014 (H) | $ 12,500 | ||
Work in process , December 31, 2015 (I) | $ 14,100 | ||
Cost of Goods Manufactured (H) = G+H-I | $ 1,816,995 |
Requirement-2:
To determine
To Prepare: The Income Statement for the year 2015
Requirement-2:
Expert Solution

Answer to Problem 3BPSB
Solution: The Income Statement for the year 2015 is as follows:
Best Bikes | |||
Income Statement | |||
For the year 2015 | |||
Sales | $ 4,942,625 | ||
Cost of Goods Sold | $ 1,852,445 | ||
Gross Profit | $ 3,090,180 | ||
Selling Expenses: | |||
Advertising Expenses | $ 20,250 | ||
Depreciation Expense-Selling Equipment | $ 10,125 | ||
Rent Expense-Selling Space | $ 27,000 | ||
Sales Salaries Expense | $ 295,300 | ||
Total Selling Expenses | $ 352,675 | ||
General and Administrative Expenses: | |||
Depreciation Expense-Office Equipment | $ 8,440 | ||
Office Salaries Expense | $ 70,875 | ||
Rent Expense-Office Space | $ 23,625 | ||
Total General and Administrative Expenses | $ 102,940 | ||
Net Income before Taxes | $ 249,735 | ||
Taxes | $ 136,700 | ||
Net Income | $ 113,035 |
Explanation of Solution
Explanation: The Income Statement for the year 2015 is prepared as follows:
Best Bikes | |||
Income Statement | |||
For the year 2015 | |||
Sales (A) | $ 4,942,625 | ||
Cost of Goods Sold (B) | $ 1,852,445 | ||
Gross Profit (C) = A-B = | $ 3,090,180 | ||
Selling Expenses: | |||
Advertising Expenses | $ 20,250 | ||
Depreciation Expense-Selling Equipment | $ 10,125 | ||
Rent Expense-Selling Space | $ 27,000 | ||
Sales Salaries Expense | $ 295,300 | ||
Total Selling Expenses (D) | $ 352,675 | ||
General and Administrative Expenses: | |||
Depreciation Expense-Office Equipment | $ 8,440 | ||
Office Salaries Expense | $ 70,875 | ||
Rent Expense-Office Space | $ 23,625 | ||
Total General and Administrative Expenses (E) | $ 102,940 | ||
Net Income before Taxes (F) = C-D-E = | $ 249,735 | ||
Taxes (G) | $ 136,700 | ||
Net Income (F-G) | $ 113,035 |
Working note:
Best Bikes | |||
Schedule of Cost of Goods Manufactured | |||
For the year 2015 | |||
Raw Material Purchases (A) | $ 894,375 | ||
Raw Materials, December 31, 2014 (B) | $ 40,375 | ||
Raw Materials, December 31, 2015 (C) | $ 70,430 | ||
Raw Material Used (D) = A+B-C | $ 864,320 | ||
Direct Labor (E) | $ 562,500 | ||
Overhead Costs: | |||
Depreciation Expense-Factory Equipment | $ 35,400 | ||
Factory Supervision | $ 121,500 | ||
Factory Supplies used | $ 6,060 | ||
Factory Utilities | $ 37,500 | ||
Indirect Labor | $ 59,000 | ||
Misc. Production Costs | $ 8,440 | ||
Rent Expense-Factory Building | $ 93,500 | ||
Maintenance Expense- Factory Equipment | $ 30,375 | ||
Total Overhead Costs (F) | $ 391,775 | ||
Total Manufacturing Cost (G) =D+E+F | $ 1,818,595 | ||
Work in process , December 31, 2014 (H) | $ 12,500 | ||
Work in process , December 31, 2015 (I) | $ 14,100 | ||
Cost of Goods Manufactured (H) = G+H-I | $ 1,816,995 | ||
Cost of Goods Manufactured (H) | $ 1,816,995 | ||
Finished Goods , December 31, 2014 (I) | $ 177,200 | ||
Finished Goods , December 31, 2015 (J) | $ 141,750 | ||
Cost of Goods Sold (K) =H+I-J | $ 1,852,445 |
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Cobalt Distributors processes customer payments at its central office in Denver. The company has an average accounts receivable (A/R) balance of $4.2 million, which is financed through a line of credit at an annual interest rate of 11.8%. Management is evaluating a new lockbox system that is expected to reduce A/R by 19%. The annual cost of operating the lockbox system is $18,500. What is the estimated net annual savings from implementing the lockbox system?
Adam Traders is preparing its cash budget for the month of June. The company estimated credit sales for June at $180,000. Actual credit sales for May were $140,000. Estimated collections in June for credit sales in June are 25%. Estimated collections in June for credit sales in May are 60%. Estimated collections in June for credit sales prior to May are $10,000. Estimated write-offs in June for uncollectible credit sales are $6,000. The estimated provision for bad debts in June for credit sales in June is $5,000. What are the estimated cash receipts from accounts receivable collections in June?
Please give me true answer this financial accounting question
Chapter 18 Solutions
Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
Ch. 18 - Prob. 1DQCh. 18 - Prob. 2DQCh. 18 - Prob. 3DQCh. 18 - Prob. 4DQCh. 18 - Prob. 5DQCh. 18 - Prob. 6DQCh. 18 - Prob. 7DQCh. 18 - Prob. 8DQCh. 18 - Prob. 9DQCh. 18 - Prob. 10DQ
Ch. 18 - Prob. 11DQCh. 18 - Prob. 12DQCh. 18 - Prob. 13DQCh. 18 - Prob. 14DQCh. 18 - Prob. 15DQCh. 18 - Prob. 16DQCh. 18 - Prob. 17DQCh. 18 - Prob. 18DQCh. 18 - Prob. 19DQCh. 18 - List the four components of a schedule of cost of...Ch. 18 - Prepare a proper title for the annual schedule of...Ch. 18 - Describe the relations among the income statement,...Ch. 18 - Prob. 23DQCh. 18 - Prob. 24DQCh. 18 - Prob. 25DQCh. 18 - Prob. 1QSCh. 18 - Prob. 2QSCh. 18 - Prob. 3QSCh. 18 - Classifying product costs C2 Identify each of the...Ch. 18 - Prob. 5QSCh. 18 - Prob. 6QSCh. 18 - Prob. 7QSCh. 18 - Prob. 8QSCh. 18 - Prob. 9QSCh. 18 - Prob. 10QSCh. 18 - Prob. 11QSCh. 18 - Prob. 12QSCh. 18 - Prob. 13QSCh. 18 - QS 18-17
Raw materials inventory...Ch. 18 - Prob. 1ECh. 18 - Prob. 2ECh. 18 - Prob. 3ECh. 18 - Prob. 4ECh. 18 - Prob. 5ECh. 18 - Prob. 6ECh. 18 - Prob. 7ECh. 18 - Prob. 8ECh. 18 - Prob. 9ECh. 18 - Prob. 10ECh. 18 - Prob. 11ECh. 18 - Prob. 12ECh. 18 - Prob. 13ECh. 18 - Prob. 14ECh. 18 - Prob. 15ECh. 18 - Prob. 16ECh. 18 - Prob. 17ECh. 18 - Prob. 1APSACh. 18 - Prob. 2APSACh. 18 - Prob. 3APSACh. 18 - Problem 18-4A Ending inventory computation and...Ch. 18 - Prob. 5APSACh. 18 - Prob. 1BPSBCh. 18 - Prob. 2BPSBCh. 18 - Prob. 3BPSBCh. 18 - Prob. 4BPSBCh. 18 - Prob. 5BPSBCh. 18 - Prob. 18SPCh. 18 - Prob. 1BTNCh. 18 - Prob. 2BTNCh. 18 - Prob. 3BTNCh. 18 - Prob. 4BTNCh. 18 - Prob. 5BTNCh. 18 - Prob. 6BTNCh. 18 - Prob. 7BTNCh. 18 - Prob. 8BTNCh. 18 - Prob. 9BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Please see an attachment for details the general accounting question and step by step explanation do fastarrow_forwardWhat would be the value of ending inventory?arrow_forwardA company produces a single product, with a selling price of $12 and a variable cost of $7. Fixed costs are $120,000 per period. What volume of sales in units is needed to earn a profit of $80,000 per period?arrow_forward
- Lucid Echo Studios has forecasted sales of $24,000,000 for next year and expects its cost of goods sold (COGS) to remain at 75% of sales. Currently, the firm holds $2,700,000 in inventories, $1,800,000 in accounts receivable, and $2,200,000 in accounts payable. What is the length of Lucid Echo Studios' cash conversion cycle (CCC)? a. 40.94 days b. 31.58 days c. 37.53 days d. 43.75 daysarrow_forwardFinancial accounting 25.4.45arrow_forwardFinancial accounting MCQ 1arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
IAS 29 Financial Reporting in Hyperinflationary Economies: Summary 2021; Author: Silvia of CPDbox;https://www.youtube.com/watch?v=55luVuTYLY8;License: Standard Youtube License