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HW Acct 2

The document provides cost of goods manufactured and income statement schedules for a manufacturing company for the year ended December 31, 2017. It includes details of direct materials used, direct labor, manufacturing overhead, cost of goods manufactured, cost of goods sold, gross profit, operating expenses and net profit. It also provides a current assets schedule including inventory amounts.

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4 views4 pages

HW Acct 2

The document provides cost of goods manufactured and income statement schedules for a manufacturing company for the year ended December 31, 2017. It includes details of direct materials used, direct labor, manufacturing overhead, cost of goods manufactured, cost of goods sold, gross profit, operating expenses and net profit. It also provides a current assets schedule including inventory amounts.

Uploaded by

tatuan311
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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HW1:

(a) Cost of Goods Manufactured Schedule - Year Ended December 31, 2017

Description Amount

Beginning Work in Process Inventory $80,000

Direct Materials Used:

+ Raw materials beginning $30,000

- Raw materials purchases $205,000

- Less: Ending raw materials inventory $20,000

= Direct materials used $215,000

Direct Labor $350,000

Manufacturing Overhead:

- Indirect materials $15,000

- Indirect labor $90,000

- Factory manager's salary $35,000

- Factory machinery rent $40,000

- Factory utilities $65,000

- Depreciation, factory building $24,000


- Property taxes, factory building $6,000

- Insurance, factory $14,000

= Total manufacturing overhead $289,000

Total Manufacturing Costs $854,000

Less: Ending Work in Process Inventory $50,000

Cost of Goods Manufactured $884,000

(b) Income Statement - Year Ended December 31, 2017

Description Amount

Sales Revenue (1) $1,500,000

Cost of Goods Sold: (2)

- Beginning Finished Goods Inventory $110,000

+ Cost of Goods Manufactured $884,000

- Less: Ending Finished Goods Inventory $120,000

= Cost of Goods Sold $874,000

Gross Profit (3=1-2) $626,000

Operating Expenses: (4)


- Delivery expenses $100,000

- Sales commissions $150,000

- Administrative expenses $300,000

= Total Operating Expenses $550,000

Net Profit (5=3-4) $76,000

(c) Current Assets - December 31, 2017

Description Amount

Cash $17,000

Accounts Receivable (net) $120,000

Prepaid Expenses $13,000

Short-Term Investments $26,000

Inventory

- Raw materials $20,000

- WIP $50,000

- Finished goods $120,000

Total Current Assets $366,000


HW2:
a) Cost of Goods Manufactured (COGM):
Break down of costs:
 Direct Materials Used: $120,000
 Direct Labor: $110,000
 Manufacturing Overhead:
o Factory supplies used: $25,000
o Depreciation on plant: $60,000
o Advertising expense: $45,000
o Property taxes on plant: $19,000
o Property taxes on store: $7,500
o Delivery expense: $21,000
o Labor costs of sales clerks: $50,000
o Sales commissions: $35,000

Manufacturing Overhead = Factory supplies used + Depreciation on plant = $25,000 +


$60,000 = $85,000

COGM = $10,000 (Beginning WIP) + $120,000 (Materials) + $110,000 (Labor) +


$85,000 (MO) - $14,000 (Ending WIP) = $321,000

b) Cost of Goods Sold (COGS):


- COGM: $321,000
- Beginning Finished Goods Inventory: $60,500
- Ending Finished Goods Inventory: $50,600

COGS = $321,000 + $60,500 - $50,600 = $330,900

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