Horngren's Accounting, Student Value Edition (12th Edition)
12th Edition
ISBN: 9780134487151
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 18, Problem E18.17E
Identifying differences between service, merchandising, and manufacturing companies
Learning Objective 3
Company B: $41
Using the data on the previous page, calculate operating income for each company.
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P16 • MANUFACTURING ACCOUNTING (MFG)
LEARNING OBJECTIVES
Prepare a schedule of cost of goods manufactured and sold.
• Calculate changes in labor cost needed to achieve production goals.
Alter the worksheet to include an income statement for a manufacturing firm.
Create a chart showing the dollar amount of materials, labor, and overhead.
PROBLEM DATA
The following information is for Twisp Industries for the year ended December 31, 2011:
Depreciation-equipment
$ 180,000
Direct labor
2,568,000
Direct materials inventory, 1/1/11
366,000
Direct materials inventory, 12/31/11
372,000
Factory rent
305,640
Finished goods, 1/1/11
528,000
Finished goods, 12/31/11
690,000
Indirect labor
150,000
Indirect materials
105,000
Purchases of direct materials
2,580,720
Work in process, 1/1/11
121,200
Work in process, 12/31/11
114,660
REQUIREMENT
1. You have been asked to prepare a schedule of cost of goods manufactured and sold for the
year just ended. Review the worksheet MFG that follows these…
Profit Center Responsibility Reporting
Championship Sports Inc. operates two divisions-the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the
trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:
Sales-Winter Sports Division
Sales-Summer Sports Division
Cost of Goods Sold-Winter Sports Division
Cost of Goods Sold-Summer Sports Division
Sales Expense-Winter Sports Division
Sales Expense-Summer Sports Division
Administrative Expense-Winter Sports Division
Administrative Expense-Summer Sports Division
Advertising Expense
Transportation Expense
$28,350,000
31,320,000
17,010,000
18,090,000
4,860,000
4,320,000
2,835,000
2,781,000
990,000
524,800
252,000
2,700,000
Accounts Receivable Collection Expense
Warehouse Expense
The bases to be used in allocating expenses, together with other information, are as follows:
a. Advertising…
Learning Objective 1
hued Product
A condensed income statement by product line for Crown Beverage Inc. indicated the following for Royal Cola for the past year:
Sales
$236,900
Cost of goods sold
110,000
Gross profit
$126,900
Operating expenses
142,000
Loss from operations
$(15,100)
It is estimated that 14% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fixed. Since Royal Cola is only one of many products, the fixed costs will not be materially affected if the
product is discontinued.
a. Prepare a differential analysis, dated March 3, to determine whether Royal Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter zero "0". Use a minus sign to indicate a loss.
Differential Analysis
Continue Royal Cola (Alt. 1) or Discontinue Royal Cola (Alt. 2)
January 21
Differential Effect
Continue Royal
Discontinue Royal
on Income
(Alternative 2)
Cola (Alternative 1) Cola (Alternative 2)…
Chapter 18 Solutions
Horngren's Accounting, Student Value Edition (12th Edition)
Ch. 18 - Prob. 1QCCh. 18 - Prob. 2QCCh. 18 - Dunaway Company reports the following costs for...Ch. 18 - Which of the following is a direct cost of...Ch. 18 - Which of the following is not part of...Ch. 18 - Which of the following accounts does a...Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - World-class businesses use which of these systems...Ch. 18 - Prob. 10QC
Ch. 18 - What is the primary purpose of managerial...Ch. 18 - List six differences between financial accounting...Ch. 18 - Explain the difference between line positions and...Ch. 18 - Explain the differences between planning,...Ch. 18 - Prob. 5RQCh. 18 - Describe a service company, and give an example.Ch. 18 - Describe a merchandising company, and give an...Ch. 18 - How do manufacturing companies differ from...Ch. 18 - List the three inventory accounts used by...Ch. 18 - Explain the difference between a direct cost and...Ch. 18 - What are the three manufacturing costs for a...Ch. 18 - Give five examples of manufacturing overhead.Ch. 18 - What are prime costs? Conversion costs?Ch. 18 - What are product costs?Ch. 18 - How do period costs differ from product costs?Ch. 18 - How is cost of goods manufactured calculated?Ch. 18 - How does a manufacturing company calculate cost of...Ch. 18 - How does a manufacturing company calculate unit...Ch. 18 - How does a service company calculate unit cost per...Ch. 18 - How does a merchandising company calculate unit...Ch. 18 - Prob. S18.1SECh. 18 - Prob. S18.2SECh. 18 - Distinguishing between direct and indirect costs...Ch. 18 - Computing manufacturing overhead Learning...Ch. 18 - Identifying product costs and period costs...Ch. 18 - Computing cost of goods sold, merchandising...Ch. 18 - Computing cost of goods sold and operating income,...Ch. 18 - Prob. S18.8SECh. 18 - Prob. S18.9SECh. 18 - Prob. S18.10SECh. 18 - S18-11 Matching business trends...Ch. 18 - Prob. S18.12SECh. 18 - Prob. E18.13ECh. 18 - Prob. E18.14ECh. 18 - Prob. E18.15ECh. 18 - Prob. E18.16ECh. 18 - Identifying differences between service,...Ch. 18 - Prob. E18.18ECh. 18 - Computing cost of goods manufactured Learning...Ch. 18 - Prob. E18.20ECh. 18 - Prob. E18.21ECh. 18 - Prob. E18.22ECh. 18 - Prob. E18.23ECh. 18 - Prob. E18.24ECh. 18 - Prob. P18.25APGACh. 18 - Classifying period costs and product costs...Ch. 18 - Calculating cost of goods sold for merchandising...Ch. 18 - Prob. P18.28APGACh. 18 - Preparing a schedule of cost of goods manufactured...Ch. 18 - Prob. P18.30APGACh. 18 - Prob. P18.31APGACh. 18 - Prob. P18.32APGACh. 18 - Prob. P18.33BPGBCh. 18 - Prob. P18.34BPGBCh. 18 - Prob. P18.35BPGBCh. 18 - Prob. P18.36BPGBCh. 18 - Prob. P18.37BPGBCh. 18 - Prob. P18.38BPGBCh. 18 - Prob. P18.39BPGBCh. 18 - Prob. P18.40BPGBCh. 18 - Prob. P18.41CTCh. 18 - Prob. P18.42CPCh. 18 - Prob. 18.1TIATCCh. 18 - Prob. 18.1DCCh. 18 - Prob. 18.1EI
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