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Chapter 2 Problems & With Solutions

The document contains accounting information for Santa Inez, Inc. for the month of July and yearly data for an unnamed company. It includes beginning and ending inventory amounts for direct materials, work-in-process, and finished goods for July and the year. It also provides additional costs for July like direct materials purchased, direct labor costs, and manufacturing overhead. The required sections ask to calculate prime costs, conversion costs, total manufacturing costs, cost of goods manufactured, and cost of goods sold for July. For the yearly data, it asks to calculate direct materials inventory for January 1st, total manufacturing costs, direct labor costs, and sales revenue.

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Ahmed Mohamud
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75 views

Chapter 2 Problems & With Solutions

The document contains accounting information for Santa Inez, Inc. for the month of July and yearly data for an unnamed company. It includes beginning and ending inventory amounts for direct materials, work-in-process, and finished goods for July and the year. It also provides additional costs for July like direct materials purchased, direct labor costs, and manufacturing overhead. The required sections ask to calculate prime costs, conversion costs, total manufacturing costs, cost of goods manufactured, and cost of goods sold for July. For the yearly data, it asks to calculate direct materials inventory for January 1st, total manufacturing costs, direct labor costs, and sales revenue.

Uploaded by

Ahmed Mohamud
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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1. The following information comes from the accounting records for Santa Inez, Inc.

, for July:

Account names Amounts

Direct materials inventory, July 1. . . . . . . . . . . . . . . . . . . . . $ 12,000


Direct materials inventory, July 31. . . . . . . . . . . . . . . . . . . . . . 10,000
Work-in-process inventory, July 1 . . . . . . . . . . . . . . . . . . . . . . 6,000
Work-in-process inventory, July 31 . . . . . . . . . . . . . . . . . . . . . 4,000
Finished goods inventory, July 1 . . . . . . . . . . . . . . . . . . . . . . . 36,000
Finished goods inventory, July 31 . . . . . . . . . . . . . . . . . . . . . . 48,000
Direct materials purchased during July . . . . . . . . . . . . . . . . . . 160,000
Direct labor costs, July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,000
Manufacturing overhead, July . . . . . . . . . . . . . . . . . . . . . . . . 168,000

Required

Compute for the month of July:


a. Total prime costs.
b. Total conversion costs.
c. Total manufacturing costs.
d. Cost of goods manufactured.
e. Cost of goods sold.

2. The following data refer to one year. Find the missing.


Direct materials inventory, December 31. . . . . . . . . . . . . . . . $12,300
Work-in-process inventory, January 1 . . . . . . . . . . . . . . . . . . . . 8,100
Work-in-process inventory, December 31 . . . . . . . . . . . . . . . . .11,400
Finished goods inventory, January 1 . . . . . . . . . . . . . . . . . . . . . 5,700
Finished goods inventory, December 31 . . . . . . . . . . . . . . . . . . . 900
Purchases of Direct materials . . . . . . . . . . . . . . . . . . 48,300
Cost of goods Manufactured during the year. . . . . . . . . . . . 163,350
Cost of goods sold………………………………………… 168,150
Gross margin ……………………………………………… . 147,750
Direct materials used……………………………………….. 43,800
Manufacturing overhead……………………………………. 41,400

Required
Compute for the following missing:
a. Direct materials inventory, January 1.
b. Total manufacturing costs.
c. Direct labor costs
d. Sales revenue

End.

Prepared by Ust. Ahmed Abdullahi Mohamud (Geelle)


Solutions

a.

458,000

Prepared by Ust. Ahmed Abdullahi Mohamud (Geelle)


11,400
8,100

Total manufacturing cost

Prepared by Ust. Ahmed Abdullahi Mohamud (Geelle)

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