Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 14

Chapter 14
Managerial Accounting Concepts
and Principles
Exercise 14-13 (25 minutes)

DELRAY MFG.
Schedule of Cost of Goods Manufactured
For Year Ended December 31
Direct materials
Raw materials inventory, beginning...................................
$ 37,000
Raw materials purchases.....................................................
175,600
Raw materials available for use...........................................
212,600
Less raw materials inventory, ending.................................
42,700
Direct materials used............................................................ $169,900
Direct labor............................................................................... 225,000
Factory overhead
Indirect labor.........................................................................
47,000
Repairs—Factory equipment...............................................
23,000
Rent cost of factory building...............................................
57,000
Total factory overhead.......................................................... 127,000
Total manufacturing costs...................................................... 521,900
Add work in process inventory, beginning........................... 53,900
Total cost of work in process................................................. 575,800
Less work in process inventory, ending............................... 41,500
Cost of goods manufactured.................................................. $534,300

889
Copyright © 2022 by McGraw Hill.
All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
 Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 14

Exercise 14-14 (20 minutes)

DELRAY MFG.
Income Statement
For Year Ended December 31
Sales..........................................................................................$1,250,000
Cost of goods sold
Finished goods inventory, beginning.................................
$ 62,700
Cost of goods manufactured...............................................
534,300
Goods available for sale.......................................................
597,000
Less finished goods inventory, ending..............................
67,300
Cost of goods sold................................................................ 529,700
Gross profit............................................................................... 720,300
Selling expenses...................................................................... 94,000
General and administrative expenses................................... 129,300
Net income................................................................................$ 497,000

890
Copyright © 2022 by McGraw Hill.
All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.
 Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 14

Exercise 14-15 (25 minutes)

1.
Beck Manufacturing
Schedule of Cost of Goods Manufactured
For Year Ended December 31
Direct materials
Raw materials inventory, beginning......................................
$10,000
Raw materials purchases........................................................
45,000
Raw materials available for use.............................................
55,000
Less raw materials inventory, ending.................................... 8,500
Direct materials used.............................................................. $ 46,500
Direct labor .................................................................................27,500
Factory overhead........................................................................55,000
Total manufacturing costs ........................................................ 129,000
Add work in process inventory, beginning..............................14,000
Total cost of work in process.................................................... 143,000
Less work in process inventory, ending..................................12,000
Cost of goods manufactured..................................................... $131,000

2.
Cost of goods sold
Finished goods inventory, beginning......................................
$ 16,000
Cost of goods manufactured....................................................
131,000
Goods available for sale............................................................
147,000
Less finished goods inventory, ending...................................
18,000
Cost of goods sold.....................................................................
$129,000

891
Copyright © 2022 by McGraw Hill.
All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.