Cost of Goods Manufactured

Cellular Products
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2014 (in thousands)
Direct Materials:
Beginning inventory, January 1, 2014 $ 11,000
Purchases of direct materials $ 73,000
STEP 1
Cost of direct materials available for use $ 84,000
Ending inventory, December 31, 2014 $ 8,000
Direct Materials used

Direct Materials used

Direct manufacturing labor
Manufacturing overhead costs:
Indirect manufacturing labor $ 7,000
Supplies $ 2,000
STEP 2 Heat, light, and power $ 5,000
Depreciation - plant building $ 2,000
Depreciation - plant equipment $ 3,000
Miscellaneous $ 1,000
Total manufacturing overhead costs
Manufacturing costs incurred during 2014

Manufacturing costs incurred during 2014

Beginning work-in-process inventory, January 1, 2014
STEP 3 Total manufacturing costs to account for
Ending work-in-process inventory, December 31, 2014
Cost of goods manufactured (to income statement)

Revenues
Cost of goods sold:
Beginning finished goods inventory, January 1, 2014 $ 22,000
Cost of goods manufactured $ 104,000
Cost of goods available for sale $ 126,000
Ending finished goods inventory, December 31, 2014 $ 18,000
Cost of goods sold

STEP 4
 Gross margin (or gross profit)
STEP 4
Operating costs:
R&D, design, marketing, and customer-service cost $ 70,000
a. $ -
b. $ -
c. $ -
d. $ -
Total operating costs
Operating income
$ 76,000

$ 76,000
$ 9,000

$ 20,000
$ 105,000

$ 105,000
$ 6,000
$ 111,000
$ 7,000
$ 104,000

$ 210,000

$ 108,000
$ 102,000

$ 70,000
$ 32,000
 Number of units required to be sold at $200
Selling Price to Earn Target Operating Income of
Variable Costs Selling Price per Contribution $0 $ 1,200 $ 1,600
Fixed Costs
per Unit Unit Margin per Unit Breakeven Point
$ 2,000 $ 100 $ 200 $ 100 20 32 36
$ 2,000 $ 120 $ 200 $ 80 25 40 45
$ 2,000 $ 150 $ 200 $ 50 40 64 72
$ 2,400 $ 100 $ 200 $ 100 24 36 40
$ 2,400 $ 120 $ 200 $ 80 30 45 50
$ 2,400 $ 150 $ 200 $ 50 48 72 80
$ 2,800 $ 100 $ 200 $ 100 28 40 44
$ 2,800 $ 120 $ 200 $ 80 35 50 55
$ 2,800 $ 150 $ 200 $ 50 56 80 88
to be sold at $200
Operating Income of
$ 2,000

40
50
80
44
55
88
48
60
96
 ‫سوال دوم‬
‫‪560000‬‬ ‫مصارف ثابت مجموعی یک دوره‬
‫‪50‬‬ ‫مصارف متحول فی واحد‬
‫‪160‬‬ ‫تعداد‬
‫‪3550‬‬ ‫قیمت فی تکت در صورتی که فقط مصارف را پوشش دهد‬
‫مفاد عملیاتی در صورتی قیمت فروش فی تکت ‪ 5000‬باشد‬
‫‪800000‬‬ ‫عواید فروش تکت ‪ 160‬نفر‬
‫‪568000‬‬ ‫مجموع مصارف برای ‪ 160‬نفر‬
‫‪232000‬‬ ‫مفاد عملیاتی‬
‫‪150000‬‬ ‫عواید فروش تکت ‪ 60‬نفر‬
‫‪571000‬‬ ‫مجموع مصارف برای ‪ 220‬نفر‬
‫‪379000‬‬ ‫مفاد عملیاتی بعداز تخفیف‬
 60000 15000
Simple Lenses (S3) Complex Lenses (C5)
Total per unit Total
1 2 = (1) ÷ 60,000 3
Direct materials $ 1,125,000 $ 18.75 $ 675,000
Direct manufacturing labor $ 600,000 $ 10 $ 195,000
Total direct costs $ 1,725,000 $ 29 $ 870,000
Indirect costs allocated $ 1,800,000 $ 30 $ 585,000
Total costs $ 3,525,000 $ 58.75 $ 1,455,000

Budgeted total costs in indirect-cost pool $ 2,385,000

Budgeted total quantity of cost-allocation base 39750
Budgeted indirect-cost rate $ 60
Total direct manufacturing labor-hours for S3 Lenses 30000
Total direct manufacturing labor-hours for C5 Lenses 9750
 15000
Complex Lenses (C5)
per unit Total
4 = (3) ÷ 15,000 5 = (1) + (3)
$ 45 $ 1,800,000
$ 13 $ 795,000
$ 58 $ 2,595,000
$ 39 $ 2,385,000
$ 97.00 $ 4,980,000

Direct manufacturing labor-hours

Direct manufacturing labor-hours

 Cost of Goods Manufactured
Shaller Corporation
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2014 (in thousands)
Direct Materials:
Beginning inventory, January 1, 2014 $ 130,000
Purchases of direct materials $ 256,000
STEP 1
Cost of direct materials available for use $ 386,000
Ending inventory, December 31, 2014 $ 68,000
Direct Materials used

Direct Materials used

Direct manufacturing labor
Manufacturing overhead costs:
Indirect manufacturing labor $ 96,000
Indirect materials $ 28,000
Plant insurance $ 4,000
STEP 2
Depreciation (plant, building and equipment) $ 42,000
Plant utilities $ 24,000
Repair and maintenance - plant $ 16,000
Equipment leasing costs $ 64,000
Total manufacturing overhead costs
Manufacturing costs incurred during 2014

Manufacturing costs incurred during 2014

Beginning work-in-process inventory, January 1, 2014
STEP 3 Total manufacturing costs to account for
Ending work-in-process inventory, December 31, 2014
Cost of goods manufactured (to income statement)

Revenues
Cost of goods sold:
Beginning finished goods inventory, January 1, 2014 $ 246,000
Cost of goods manufactured $ 826,000
Cost of goods available for sale $ 1,072,000
Ending finished goods inventory, December 31, 2014 $ 204,000
STEP 4
STEP 4 Cost of goods sold
Gross margin (or gross profit)
Operating costs:
Marketing, distribution, and customer-service costs $ 124,000
General and administration costs $ 68,000
Total operating costs
Operating income
$ 318,000

$ 318,000
$ 212,000

$ 274,000
$ 804,000

$ 804,000
$ 166,000
$ 970,000
$ 144,000
$ 826,000

$ 1,200,000
$ 868,000
$ 332,000

$ 192,000
$ 140,000
 Montgomery Retail Outlet Stores
Merchandise inventory, January 1, 2014 $ 90,000
Purchases $ 520,000
Merchandise freight-in $ 20,000
Cost of goods purchased $ 540,000
Purchased returns and allowances $ 22,000
Purchased discounts $ 18,000
Net purchases $ 500,000
Cost of goods available for sale $ 590,000
Merchandise inventory, December 31, 2014 $ 104,000
Cost of goods sold $ 486,000

Revenues $ 640,000
Gross margin $ 154,000
General and administrative costs $ 64,000
Marketing and advertising costs $ 48,000
Shipping of merchandise to customers $ 4,000
Building depreciation $ 8,400
Total operating costs $ 124,400
Operating income $ 29,600
 Cost of Goods Manufactured
Howell Corporation
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 2014 (in thousands)
Direct Materials:
Beginning inventory, January 1, 2014 $ 15
Purchases of direct materials $ 325
STEP 1
Cost of direct materials available for use $ 340
Ending inventory, December 31, 2014 $ 20
Direct Materials used

Direct Materials used

Direct manufacturing labor
Manufacturing overhead costs:
Indirect manufacturing labor $ 60
Depreciation-plant and equipment $ 80
STEP 2 Plant supervisory salaries $ 5
Miscellaneous plant overhead $ 35
Plant utilities $ 30
Plant supplies used $ 10
Total manufacturing overhead costs
Manufacturing costs incurred during 2014

Manufacturing costs incurred during 2014

Beginning work-in-process inventory, January 1, 2014
STEP 3 Total manufacturing costs to account for
Ending work-in-process inventory, December 31, 2014
Cost of goods manufactured (to income statement)

Revenues
Cost of goods sold:
Beginning finished goods inventory, January 1, 2014 $ 70
Cost of goods manufactured $ 645
Cost of goods available for sale $ 715
Ending finished goods inventory, December 31, 2014 $ 55
STEP 4
Cost of goods sold
STEP 4

Gross margin (or gross profit)

Operating costs:
Marketing, distribution, and customer-service costs $ 240
Total operating costs
Operating income
$ 320

$ 320
$ 100

$ 220
$ 640

$ 640
$ 10
$ 650
$ 5
$ 645

$ 950

$ 660
$ 290

$ 240
$ 50
 ‫ارزش مجموعی قیمت فی واحد مقدار‬
‫مقدار تولید‬ ‫‪7000‬‬
‫‪ A‬مواد خام مورد نیاز نوع‬ ‫‪35000‬‬ ‫‪50‬‬ ‫‪1750000‬‬
‫‪ B‬مواد خام مورد نیاز نوع‬ ‫‪28000‬‬ ‫‪75‬‬ ‫‪2100000‬‬
‫ساعات کارمستقیم مورد نیاز‬ ‫‪28000‬‬ ‫‪100‬‬ ‫‪2800000‬‬
‫مصارف تمام شد اجناس تولید شده‬ ‫‪6650000‬‬
‫مصارف تمام شد اجناس فروخته شده‬ ‫‪6500‬‬ ‫‪950‬‬ ‫‪6175000‬‬
‫مصارف اداری و فروش‬
‫معاشات‬ ‫‪200000‬‬
‫کرایه تعمیرات‬ ‫‪150000‬‬
‫استهالکات‬ ‫‪80000‬‬
‫بیمه‬ ‫‪55000‬‬
‫اشتهارات‬ ‫‪100000‬‬
‫مجموع مصارف اداری و بازاریابی‬ ‫‪90‬‬ ‫‪585000‬‬
‫قیمت فروش فی واحد‬ ‫‪1140‬‬ ‫‪7410000‬‬
‫مفاد ناخالص‬ ‫‪190‬‬ ‫‪1235000‬‬
‫مفاد عملیاتی‬ ‫‪100‬‬ ‫‪650000‬‬
 Process Costing with Zero Beginning Inventory and Some Ending Work-in-Process Inventory
Five Steps Process Costing
Step 1

Physical
Flow of Production
Units
Work in process, beginning 0
Started during current period 400
To account for 400
Completed and transferred out during period 175
Work in process, ending 100% 60% 225
Accounted for 400
Equivalent uints of work done in current period
Total
Step 3 Production
Costs
Costs added during February $ 50,600
Total costs to account for $ 50,600
Step 4
Costs added in current period $ 50,600
Divided by equivalent units of work done in current period
Cost per equivalent unit
Step 5
Assignment of costs:
Completed and transferred out 175 $ 24,500
Work in process, ending 225 $ 26,100
Total costs to account for $ 50,600
nding Work-in-Process Inventory

Step 2
Equivalent Units
Direct Conversion
Materials Costs

175 175
225 135

400 310

Direct Conversion
Materials Costs

$ 32,000 $ 18,600
$ 32,000 $ 18,600

$ 32,000 $ 18,600
400 310
$ 80 $ 60

$ 14,000 $ 10,500
$ 18,000 $ 8,100
$ 32,000 $ 18,600
 Process Costing with Some Beginning and Some Ending Work-in-Process Invent
Five Steps Process Costing
Physical
Units
Work in process, beginnning inventory (March 1) 225
Degree of completion of beginning work in process
Started during March 275
Completed and transferred out during March 400
Work in process, ending inventory (March 31) 100
Degree of completion of ending work in process
Total costs added during March
Step 1

Physical
Flow of Production
Units
Work in process, beginning 225
Started during current period 275
To account for 500
Completed and transferred out during period 400
Work in process, ending 100% 50% 100
Accounted for 500
Equivalent uints of work done in current period
Total
Step 3 Production
Costs
Work in process, beginning (given) $ 26,100
Costs added in current period (given) $ 36,180
Total costs to account for $ 62,280
Step 4
Costs incurred to date
Divided by equivalent units of work done to date
Cost per equivalent unit of work done to date
Step 5
Assignment of costs:
Completed and transferred out 400 $ 52,000
Work in process, ending 100 $ 10,280
Total costs account for $ 62,280
e Ending Work-in-Process Inventory
Costing
Direct Conversion
Total Costs
Materials Costs
$ 18,000 $ 8,100 $ 26,100
100% 60%

100% 50%
$ 19,800 $ 16,380 $ 36,180
Step 2
Equivalent Units
Direct
Conversion Costs
Materials

400 400
100 50

500 450

Direct
Conversion Costs
Materials

$ 18,000 $ 8,100
$ 19,800 $ 16,380
$ 37,800 $ 24,480

$ 37,800 $ 24,480
500 450
$ 75.60 $ 54.40

$ 30,240 $ 21,760
$ 7,560 $ 2,720
$ 37,800 $ 24,480
Cost Type Mathematical Financial
Direct Material 180000 360000
Direct Labor 90000 180000
Machining 120000 240000
Setup Cost 54000 54000
Inspection Cost 78000 39000
Total Cost 522000 873000
Cost per unit 11.6 9.7

Machin Hours 30000 60000

Productiont Run 45 45
Inspection Hours 1200 600

Machining 360000 4
Setup Cost 108000 1200
Inspection Cost 117000 65
Plantwide 585000 4.333333

Direct Material 180000 360000

Direct Labor 90000 180000
Overhead Cost 195000 390000
Total Cost 465000 930000
Cost per unit 10.3333333333 10.33333