FUNDAMENTALS OF COST ACCOUNTING
6th Edition
ISBN: 9781266742040
Author: LANEN
Publisher: MCG
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Textbook Question
Chapter 2, Problem 42E
Prepare Statements for a Manufacturing Company
The following balances are from the accounts of Crabtree Machining Company:
Direct materials purchased during the year amount to $717,600, and the cost of goods sold for the year was $2,606,880.
Required
Reconstruct a cost of goods sold statement and fill in the following missing data:
- a. Cost of direct materials used during the year.
- b. Cost of goods manufactured during the year.
- c. Total
manufacturing costs incurred during the year.
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Students have asked these similar questions
Please Provide Answer with step by step with General Accounting Method
Answer the following questions by analysing the T-accounts given below.
a) Purchases of direct material
b) The cost of direct material used
c) Why does direct labor account has a credit balance of $5000? Explain
d) Direct labor costs assigned to production
e) The overhead as a percentage of direct labor costs
f) Total manufacturing costs charged to the Work in Process Inventory account during the current year
g) The cost of finished goods manufactured
h) The year-end balance in the Work in Process Inventory account
i) The cost of goods sold
j) The total amount of inventory listed in the hear-end balance sheet
k) Manufacturing overhead assigned to production
Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company
The following information is available for Bandera Manufacturing Company for the month ending January 31:
Cost of goods manufactured
$165,390
Selling expenses
55,250
Administrative expenses
29,210
Sales
351,890
Finished goods inventory, January 1
39,760
Finished goods inventory, January 31
36,240
a. For the month ended January 31, determine Bandera Manufacturing’s cost of goods sold.
Bandera Manufacturing Company
Cost of Goods Sold
January 31
$
$
$
b. For the month ended January 31, determine Bandera Manufacturing’s gross profit.
Bandera Manufacturing Company
Gross Profit
January 31
$
$
c. For the month ended January 31, determine Bandera Manufacturing’s net income.
Bandera Manufacturing Company
Net Income
January 31
$
Operating expenses:
$
Total operating expenses…
Chapter 2 Solutions
FUNDAMENTALS OF COST ACCOUNTING
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