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Compute direct materials used and Cost of Goods Manufactured (Learning Objective 5)
Justine Industries is calculating its Cost of Goods Manufactured at year-end. The company’s accounting records show the following: The Raw Materials Inventory account had a beginning balance of $17,000 and an ending balance of $12,000. During the year, the company purchased $55,000 of direct materials. Direct labor for the year totaled $121,000. while manufacturing
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Managerial Accounting (5th Edition)
- Crazy Sylum Logos (CSL) design and manufacture school uniform crests. After production, the crests are placed into individual plastic cases, before being transferred into Finished Goods. The accounting records of the business for the quarter to December 31, 2021, for the manufacturing of uniform crests for Sky High High School are given below. Inventory 1/10/2021 31/12/2021 Raw Materials $72,000 $65,000 Work in Progress $138,875 $129,125 Finished Goods $149,500 $141,700 Other Information: Sales Revenue $1,694,950 Factory Labour $239,700 Raw Materials Purchased $235,000 Office Cleaner's Wages $4,500 Factory Supplies Used $23,500 Depreciation: Factory Plant & Equiptment $32,000 Total Utilities (1) $118,750 Plant Supervisor's Salary $180,000 Design Costs (School Logo) $4,300 Packaging Material Cost $35,000 Total Insurance (2) $60,000 Delivery vehicle Driver's Wages $41,250 Depreciation: Delivery vehicle $7,250 Property Taxes…arrow_forwardA. Determine the prime cost and conversion cost of the school crests produced B. Prepare an income statement for personal All School Logos and More for the quarter ended December 31, 2021. List the non manufacturing overheads in order of size starting with the largest.arrow_forwardRegional Safety Supplies (RSS) designs and manufactures masks for students. After production, themasks are placed into individual cases, before being transferred into Finished Goods. The accountingrecords of the business reflect the following data at June 30, 2021, for the manufacturing of masks forSugar Hill High School.Inventory 1/7/2020 30/6/2021Raw Materials $230,000 $260,000Factory Supplies $35,000 $24,000Work in Progress $348,300 $203,300Finished Goods $632,900 $485,000Other information:Sales Revenue $5,731,000Factory Supplies Purchased 64,000Direct Factory Labor 792,000Raw Materials Purchased 560,000Plant janitorial service 37,000Depreciation: Plant & Equipment 186,000Total Utilities 1 481,250Production Supervisor’s Salary 450,000Design Costs (School Logo) 26,000Packaging Cases Cost 42,000Total Insurance 2 168,000Delivery Vehicle Drivers’ Wages 181,500Depreciation: Delivery Vehicle 53,290Property Taxes 3 240,000Administrative Wages & Salaries 801,250Advertising &…arrow_forward
- Regional Safety Supplies (RSS) designs and manufactures masks for students. After production, themasks are placed into individual cases, before being transferred into Finished Goods. The accountingrecords of the business reflect the following data at June 30, 2021, for the manufacturing of masks forSugar Hill High School.Inventory 1/7/2020 30/6/2021Raw Materials $230,000 $260,000Factory Supplies $35,000 $24,000Work in Progress $348,300 $203,300Finished Goods $632,900 $485,000Other information:Sales Revenue $5,731,000Factory Supplies Purchased 64,000Direct Factory Labor 792,000Raw Materials Purchased 560,000Plant janitorial service 37,000Depreciation: Plant & Equipment 186,000Total Utilities 1 481,250Production Supervisor’s Salary 450,000Design Costs (School Logo) 26,000Packaging Cases Cost 42,000Total Insurance 2 168,000Delivery Vehicle Drivers’ Wages 181,500Depreciation: Delivery Vehicle 53,290Property Taxes 3 240,000Administrative Wages & Salaries 801,250Advertising &…arrow_forwardPrepare journal entries to record the production activities. Purchased $80,000 of raw materials on credit.arrow_forwardAt the end of the first month of opening your business, you calculate the actual operating costs of the business and the income you earned. You also notice and document the difference in what you budgeted for certain materials and labor against the actual amounts you spent on the same. For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month: Materials purchased: $20,000 Consumed 80% of the purchased materials Direct labor: $8,493.33 Overhead costs: $3,765 Note: Assume that the beginning materials and ending work in process are zero for the month. Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the first month of operation. For example, if you chose a sales price of $20 per collar,…arrow_forward
- Time of Your Life is a manufacturer of graduation caps. The company uses the weighted average method of process costing to account for product costs. The following information relates to the beginning inventory for August 2019: DM Costs C Costs $1,296 $2,416 The 800 physical units in beginning inventory were 60% complete with respect to direct materials and 10% complete with respect to conversion. What was the cost to assemble a cap in July 2019?arrow_forwardBordner Company manufactures HVAC (heating, ventilation, and air conditioning) systems for commercial buildings. For each new design, Bordner faces a 90 percent learning rate. On average, the first unit of a new design takes 600 hours. Direct labor is paid 25 per hour. Required: 1. Set up a table with columns showing: the cumulative number of units, cumulative average time per unit in hours, and cumulative total time in hours. Show results by row for total production of one unit, two units, four units, eight units, and sixteen units. (Round hour answers to two significant digits.) 2. What is the total labor cost if Bordner makes the following number of units: one, four, sixteen? What is the average cost per system for the following number of systems: one, four, or sixteen? (Round your answers to the nearest dollar.) 3. Using the logarithmic function, set up a table with columns showing: the cumulative number of units, cumulative average time per unit in hours, cumulative total time in hours, and the time for the last unit. Show results by row for each of units one through eight. (Round answers to two significant digits.)arrow_forwardThe beginning balance of Work in Process Inventory was $40,000. During the year, direct materials of $200,000, direct labor of $100,000, and manufacturing overhead of $20,000 were charged to production. The ending inventory of work in process is $30,000. What is the cost of goods completed? $340,000 $390,000 $310,000 $330,000arrow_forward
- Management of DLSU Company has asked for your help as an intern in preparing some key reports for April. The beginning balance in the raw materials inventory account was ₱30,000. During the month, the company made raw materials purchases amounting to ₱67,000. At the end of the month, the balance in the raw materials inventory account was ₱35,000. Direct labor cost was ₱22,000 and manufacturing overhead was 285% of direct labor cost. The beginning balance in the work in process account was ₱22,000 and the ending balance was ₱19,000. The beginning balance in the finished goods account was ₱53,000 and the ending balance was ₱58,000. The selling expense was ₱20,000 and the administrative expense was ₱35,000. ₱____________is the total amount of Work-in-Process for the period.arrow_forward1. Calculate Lone Oak’s manufacturing overhead for the year. 2. Calculate Lone Oak’s cost of goods manufactured. 3. Compute the company’s cost of goods sold. 4. Determine net income for 20x1, assuming a 30% income tax rate. 5. Determine the number of completed units manufactured during the year.arrow_forwardThe following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Required:1. Calculate Lone Oak’s manufacturing overhead for the year.2. Calculate Lone Oak’s cost of goods manufactured.3. Compute the company’s cost of goods sold.4. Determine net income for 20x1, assuming a 30% income tax rate.5. Determine the number of completed units manufactured during the year.6. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: indirect labor is $115,000 and other factory costs amount to $516,000.arrow_forward
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning