Question 1

Selected account balances for Reed Manufacturing Company on December 31,2016,the end of the fiscal year,are given below.Data about the beginning and ending inventories are also given.Use this information to prepare a statement of cost of goods manufactured and an income statement for 2016.

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Question 2

Selected account balances for Reed Manufacturing Company on December 31,2016,the end of the fiscal year,are given below.Data about the beginning and ending inventories are also given.Record the adjusting entries for the inventory accounts on page 5 of a general journal.Skip a line and record the entry to close the manufacturing cost accounts.Omit descriptions.

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Question 3

Complete the chart below by placing an "X" under the column heading that identifies the type of cost listed to the left.

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Question 4

The following information appears on the Statement of Cost of Goods Manufactured for the Poster Company at the end of the year.  Manufacturing Overhead for the year was:

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Question 5

Stellar Manufacturing had a beginning raw materials inventory of $220,000.The firm had net purchases of $625,000 for the period and an ending raw materials inventory of $199,000.What was the cost of raw materials used?

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Question 6

The Balance Sheet headings and the accounts and their balances for Exemplar Manufacturing are listed in alphabetical order.Exemplar Manufacturing has a fiscal year end of June 30,2016.  Using the information given,prepare the Balance Sheet for Exemplar Manufacturing.Include correct indentations,underlines,dates,and capitalization where needed.

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Question 7

The following information appears on the Statement of Cost of Goods Manufactured for the Coleman Company at the end of the year.  The balance in Work in Process Inventory at year-end was:

Accepted Answer

The balance in Work in Process Inventory is calculated by taking the beginning balance, adding the total manufacturing costs incurred during the period, and subtracting the cost of goods completed and transferred out. From the information given, the total manufacturing costs incurred during the year were $260,000 and the cost of goods completed and transferred out were $250,000. Therefore, the balance in Work in Process Inventory at year-end would be $10,000 ($260,000 - $250,000), making choice A the correct answer.

Question 8

The Balance Sheet headings and the accounts and their balances for Exemplar Manufacturing are listed in alphabetical order.Exemplar Manufacturing has a fiscal year end of June 30,2016.  Using the information given,prepare the Current Assets section of the Balance Sheet for Exemplar Manufacturing.Include correct indentations,underlines,dates,and capitalization where needed.

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Question 9

Whaler utilizes automated machines to sew sails for its whaling ships.The manufacturing records indicate the Model Z7B sail uses $4,500 of fabric,requires 2 direct labor hours to finish and tie off threads and 5 hours of machine sewing time.The direct labor rate averages $12.50 per hour.Manufacturing overhead is added to the product cost of a sail based on a rate of $40 per machine hour.The company applies a 32% markup on cost.What is the sales price of a Model Z7B sail?

Accepted Answer

Step 1: Calculate the total manufacturing cost
Direct materials cost = $4,500
Direct labor cost = 2 hours x $12.50/hour = $25
Manufacturing overhead cost = 5 hours x $40/hour = $200
Total manufacturing cost = $4,500 + $25 + $200 = $4,725

Step 2: Add markup
Markup amount = 32% x $4,725 = $1,512
Selling price = Total manufacturing cost + Markup amount = $4,725 + $1,512 = $6,237

Question 10

Fill in the missing line items on the Income Statement given.Include correct indentations,underlines,dates,and capitalization when needed.

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Question 11

Keyes Company manufactured 1,000 widgets for $35 per unit.The material cost assigned to each unit is $12.Direct labor accounts for 25% of the total manufacturing cost.What is the per-unit cost of manufacturing overhead?

Accepted Answer

The total cost of manufacturing each unit can be calculated as follows:
Direct material cost per unit = $12 
Direct labor cost per unit = 25% of ($35 - $12) = 0.25 x $23 = $5.75 
Total manufacturing cost per unit = Direct material cost + Direct labor cost + Manufacturing overhead cost 
Manufacturing overhead cost per unit = Total manufacturing cost per unit - Direct material cost per unit - Direct labor cost per unit 
Manufacturing overhead cost per unit = ($35 + Manufacturing overhead cost per unit) - $12 - $5.75 
Manufacturing overhead cost per unit = $17.25 - Manufacturing overhead cost per unit 
2 x Manufacturing overhead cost per unit = $17.25 
Manufacturing overhead cost per unit = $8.625 ≈ $8.75 (rounded to the nearest cent)

Therefore, the per-unit cost of manufacturing overhead is $8.75 (Choice A).

Question 12

Fill in the missing line items on the Income Statement given.Include correct indentations,underlines,dates,and capitalization when needed.

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Question 13

Using only the relevant items from the information given,determine the total product cost for Donnybrook Corporation,a manufacturer of children's furniture.All materials purchased were used in inventory during the current period.There was no beginning inventory.

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Question 14

Fill in the missing line items on the Statement of Cost of Goods Manufactured given.Include correct indentations,underlines,dates,and capitalization when needed.

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Question 15

What are the three inventory accounts for a manufacturing firm? List the three inventory accounts and indicate for each the name(s)of the statement(s)in which it appears.

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Question 16

Fill in the missing line items on the Statement of Cost of Goods Manufactured given.Include correct indentations,underlines,dates,and capitalization when needed.

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Question 17

Bolton Company's total manufacturing cost for the year was $1,785,000.The firm's manufacturing overhead was $315,000,and its cost of raw materials used was $842,000.What was the direct labor cost for the year?

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Question 18

Calculate net income for the year.

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Question 19

Calculate the Cost of Goods Manufactured.

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Question 20

The following information appears on the Statement of Cost of Goods Manufactured for the Ethridge Company at the end of the year.  Cost of Goods Manufactured for the year was:

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Quiz 26: Accounting for Manufacturing Activities

Selected account balances for Reed Manufacturing Company on December 31,2016,the end of the fiscal year,are given below.Data about the beginning and ending inventories are also given.Use this information to prepare a statement of cost of goods manufactured and an income statement for 2016.

Complete the chart below by placing an "X" under the column heading that identifies the type of cost listed to the left.

The following information appears on the Statement of Cost of Goods Manufactured for the Poster Company at the end of the year. Manufacturing Overhead for the year was:

Stellar Manufacturing had a beginning raw materials inventory of $220,000.The firm had net purchases of $625,000 for the period and an ending raw materials inventory of $199,000.What was the cost of raw materials used?

The following information appears on the Statement of Cost of Goods Manufactured for the Coleman Company at the end of the year. The balance in Work in Process Inventory at year-end was:

Fill in the missing line items on the Income Statement given.Include correct indentations,underlines,dates,and capitalization when needed.

Keyes Company manufactured 1,000 widgets for $35 per unit.The material cost assigned to each unit is $12.Direct labor accounts for 25% of the total manufacturing cost.What is the per-unit cost of manufacturing overhead?

Fill in the missing line items on the Income Statement given.Include correct indentations,underlines,dates,and capitalization when needed.

Using only the relevant items from the information given,determine the total product cost for Donnybrook Corporation,a manufacturer of children's furniture.All materials purchased were used in inventory during the current period.There was no beginning inventory.

Fill in the missing line items on the Statement of Cost of Goods Manufactured given.Include correct indentations,underlines,dates,and capitalization when needed.

What are the three inventory accounts for a manufacturing firm? List the three inventory accounts and indicate for each the name(s)of the statement(s)in which it appears.

Fill in the missing line items on the Statement of Cost of Goods Manufactured given.Include correct indentations,underlines,dates,and capitalization when needed.

Bolton Company's total manufacturing cost for the year was $1,785,000.The firm's manufacturing overhead was $315,000,and its cost of raw materials used was $842,000.What was the direct labor cost for the year?

Calculate net income for the year.

Calculate the Cost of Goods Manufactured.

The following information appears on the Statement of Cost of Goods Manufactured for the Ethridge Company at the end of the year. Cost of Goods Manufactured for the year was: