The following inventory and cost data for the just completed year are taken from the accounting records of Sankar Company: Required: (a. )Calculate the cost of goods manufactured. (b. )Calculate the cost of goods sold
Fred Adams is employed by the Cedar Manufacturing Company on their assembly line.Fred is paid $15 per hour for regular time,and time-and-a-half for all work in excess of 40 hours per week.During the two weeks of the pay period just completed,Fred reported the following: Required: Compute Fred's wages for each week and allocate Fred's wages for each week between direct labour cost and manufacturing overhead.
The following selected account balances for the year ended December 31 are provided for Amita Company: In addition,you have the following information about inventories during the year: Cleaning supplies are in the factory. Assume the company uses FIFO. Required: (a. )Calculate the cost of the 27,600 equivalent units that were produced during the year. (b. )Calculate the cost of the ending finished goods inventory. (c. )Calculate the cost of goods sold.
Mary Tappin,an assistant Vice President at Galaxy Toys,was disturbed to find on her desk a memo from her boss,Gary Resnick,to the controller of the company.The memo appears below: Galaxy Toys Internal Memo Sept 15 To: Harry Wilson,Controller Fm: Gary Resnick,Executive Vice President As you know,we won't start recording many sales until October when stores start accepting shipments from us for the Christmas season.Meanwhile,we are producing flat-out and are building up our finished goods inventories so that we will be ready to ship next month.Unfortunately,we are in a bind right now since it looks like the net income for the quarter ending on Sept 30 is going to be pretty awful.This may get us in trouble with the bank since they always review the quarterly financial reports and may call in our loan if they don't like what they see.Is there any possibility that we could change the classification of some of our period costs to product costs--such as the rent on the finished goods warehouse? Please let me know as soon as possible.The President is pushing for results. Mary didn't know what to do about the memo.It wasn't intended for her,but its contents were alarming. Required: a.Why has Gary Resnick suggested reclassifying some period costs as product costs? b.Why do you think Mary was alarmed about the memo?