This Study Resource Was: Score [PDF]

Citation preview

Score: 19.40



out of 30 points (64.67%)



[The following information applies to the questions displayed below.]



The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Costs incurred: Direct labor cost Purchases of raw materials Manufacturing overhead Advertising expense Sales salaries Depreciation, office equipment



is ar stu ed d vi y re aC s o ou urc rs e eH w er as o. co m



Inventories: Raw materials Work in process Finished goods



1.



award:



$70,000 $118,000 $80,000 $90,000 $50,000 $3,000



Beginning of the Year



End of the Year



$7,000 $10,000 $20,000



$15,000 $5,000 $35,000



4 out of 4 points Requirement 1: Prepare a schedule of cost of goods manufactured. (Input all amounts as positive values. Omit the "$" sign in your response.) Mason Company Schedule of Cost of Goods Manufactured



sh



Th



Direct materials: Beginning raw materials inventory Add : Purchases of raw materials Raw materials available for use Deduct : Ending raw materials inventory Raw materials used in production Direct labor Manufacturing overhead Total manufacturing costs Add : Beginning work in process inventory Deduct : Ending work in process inventory Cost of goods manufactured



$7,000 118,000 125,000 15,000



$110,000 70,000 80,000 260,000 10,000 270,000 5,000 $265,000



Requirement 1: Prepare a schedule of cost of goods manufactured. (Input all amounts as positive values. Omit the "$"



This study source was downloaded by 100000816569405 from CourseHero.com on 06-06-2021 00:37:44 GMT -05:00



https://www.coursehero.com/file/7354895/ACT-222-HM-CH-1/



Prepare a schedule of cost of goods manufactured. (Input all amounts as positive values. Omit the "$" sign in your response.) Mason Company Schedule of Cost of Goods Manufactured Direct materials: Beginning raw materials inventory Add : Purchases of raw materials



$



Raw materials available for use Deduct : Ending raw materials inventory



7,000 118,000 125,000 15,000



Raw materials used in production Direct labor Manufacturing overhead



$



Total manufacturing costs Add : Beginning work in process inventory



260,000 10,000



Deduct : Ending work in process inventory



270,000 5,000 $



award:



265,000



is ar stu ed d vi y re aC s o ou urc rs e eH w er as o. co m



Cost of goods manufactured



2.



110,000 70,000 80,000



4 out of 4 points Requirement 2: Prepare the cost of goods sold section of Mason Company's income statement for the year. (Input all amounts as positive values. Omit the "$" sign in your response.) Beginning finished goods inventory Add : Cost of goods manufactured Goods available for sale Deduct : Ending finished goods inventory Cost of goods sold



$20,000 265,000 285,000 35,000 $250,000



Requirement 2: Prepare the cost of goods sold section of Mason Company's income statement for the year. (Input all amounts as positive values. Omit the "$" sign in your response.) Beginning finished goods inventory Add: Cost of goods manufactured



$



Th



Goods available for sale Deduct: Ending finished goods inventory



285,000 35,000



$



250,000



sh



Cost of goods sold



20,000 265,000



[The following information applies to the questions displayed below.]



The Devon Motor Company produces motorcycles. During April, the company purchased 8,000 batteries at a cost of $10 per battery. Devon withdrew 7,600 batteries from the storeroom during the month. Of these, 100 were used to replace batteries in motorcycles used by the company's traveling sales staff. The remaining 7,500 batteries withdrawn from the storeroom were placed in motorcycles being produced by the This study source was downloaded 100000816569405 from CourseHero.com 06-06-2021 GMT -05:00 and transferred from work in company. Of thebymotorcycles in production during on April, 90% 00:37:45 were completed https://www.coursehero.com/file/7354895/ACT-222-HM-CH-1/



company. Of the motorcycles in production during April, 90% were completed and transferred from work in process to finished goods. Of the motorcycles completed during the month, 30% were unsold at April 30. There were no inventories of any type on April 1.



3.



award:



0 out of 4 points Requirement 1: Determine the cost of batteries that would appear in each of the following accounts at April 30 (Omit the "$" sign in your response): (a) Raw Materials Raw Materials



$80,000



(b) Work in Process Work in Process



$n/r



(c) Finished Goods Finished Goods



is ar stu ed d vi y re aC s o ou urc rs e eH w er as o. co m



$n/r



(d) Cost of Goods Sold



Cost of Goods Sold



$n/r



(e) Selling Expense



Selling Expense



$n/r



Requirement 1: Determine the cost of batteries that would appear in each of the following accounts at April 30 (Omit the "$" sign in your response): (a) Raw Materials



Raw Materials



$



4,000



$



7,500



$



20,250



$



47,250



$



1,000



(b) Work in Process



Work in Process



Th



(c) Finished Goods



Finished Goods



sh



(d) Cost of Goods Sold



Cost of Goods Sold (e) Selling Expense



Selling Expense Explanation: (a)



This study source was downloaded by 100000816569405 from CourseHero.com on 06-06-2021 00:37:45 GMT -05:00



https://www.coursehero.com/file/7354895/ACT-222-HM-CH-1/



Batteries purchased Batteries drawn from inventory Batteries remaining in inventory Cost per battery Cost in Raw Materials Inventory at April 30



8,000 7,600 400 × $10 $4,000



(b)



Batteries used in production (7,600 – 100) Motorcycles completed and transferred to Finished Goods (90% × 7,500) Motorcycles still in Work in Process at April 30 Cost per battery Cost in Work in Process Inventory at April 30



7,500 6,750 750 × $10 $7,500



(c)



Motorcycles completed and transferred to Finished Goods (see above) Motorcycles sold during the month (70% × 6,750) Motorcycles still in Finished Goods at April 30 Cost per battery Cost in Finished Goods Inventory at April 30



6,750 4,725 2,025 × $10 $20,250



(d)



(e)



Batteries used in salespersons' motorcycles Cost per battery Cost in Selling Expense at April 30



100 × $10 $1,000



2.40 out of 3 points Requirement 2: Specify whether each of the above accounts would appear on the balance sheet or on the income statement at April 30. Raw Materials Work in Process Finished Goods Cost of Goods Sold



Balance Sheet Balance Sheet Income Statement Income Statement



Selling Expense



Income Statement



Th



4.



award:



4,725 × $10 $47,250



is ar stu ed d vi y re aC s o ou urc rs e eH w er as o. co m



Motorcycles sold during the month (above) Cost per battery Cost in Cost of Goods Sold at April 30



sh



Requirement 2: Specify whether each of the above accounts would appear on the balance sheet or on the income statement at April 30. Raw Materials Work in Process Finished Goods Cost of Goods Sold Selling Expense



Balance Sheet Balance Sheet Balance Sheet Income Statement Income Statement



This study source was downloaded by 100000816569405 from CourseHero.com on 06-06-2021 00:37:45 GMT -05:00



https://www.coursehero.com/file/7354895/ACT-222-HM-CH-1/



[The following information applies to the questions displayed below.] Various cost and sales data for Meriwell Company for the just completed year appear in the worksheet below: Finished goods inventory, beginning Finished goods inventory, ending Administrative expenses Manufacturing overhead Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Direct labor Work in process inventory, beginning Work in process inventory, ending Sales Selling expenses



$20,000 $40,000 $110,000 $105,000 $125,000 $9,000 $6,000 $70,000 $17,000 $30,000 $500,000 $80,000



5.



award:



is ar stu ed d vi y re aC s o ou urc rs e eH w er as o. co m



Of the $105,000 of manufacturing overhead, $15,000 is variable and $90,000 is fixed.



3 out of 3 points Requirement 1: Prepare a schedule of cost of goods manufactured. (Input all amounts as positive values. Omit the "$" sign in your response.) Meriwell Company Schedule of Cost of Goods Manufactured



Direct materials: Raw materials inventory, beginning Add : Purchase of raw materials Raw materials available for use Deduct : Raw materials inventory, ending Raw materials used in production Direct labor Manufacturing overhead Total manufacturing costs Add : Work in process inventory, beginning



$9,000 125,000 134,000 6,000



Th



Deduct : Work in process inventory, ending Cost of goods manufactured



$128,000 70,000 105,000 303,000 17,000 320,000 30,000 $290,000



sh



Requirement 1: Prepare a schedule of cost of goods manufactured. (Input all amounts as positive values. Omit the "$" sign in your response.) Meriwell Company Schedule of Cost of Goods Manufactured Direct materials: Raw materials inventory, beginning Add : Purchase of raw materials Raw materials available for use Deduct : Raw materials inventory, ending This study source was downloaded by 100000816569405 from CourseHero.com on 06-06-2021 00:37:45 GMT -05:00



https://www.coursehero.com/file/7354895/ACT-222-HM-CH-1/



$



9,000 125,000 134,000 6,000



Raw materials used in production Direct labor



$



Manufacturing overhead Total manufacturing costs Add : Work in process inventory, beginning



303,000 17,000



Deduct : Work in process inventory, ending



320,000 30,000 $



Cost of goods manufactured



6.



128,000 70,000 105,000



290,000



award:



3 out of 3 points Requirement 2: Prepare an income statement. (Input all amounts as positive values. Omit the "$" sign in your response.) Meriwell Company Income Statement $500,000



is ar stu ed d vi y re aC s o ou urc rs e eH w er as o. co m



Sales Cost of goods sold: Finished goods inventory, beginning Add : Cost of goods manufactured Goods available for sale Deduct : Finished goods inventory, ending Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Net operating income



$20,000 290,000 310,000 40,000



270,000 230,000



80,000 110,000



190,000 $40,000



Requirement 2: Prepare an income statement. (Input all amounts as positive values. Omit the "$" sign in your response.) Meriwell Company Income Statement



Sales Cost of goods sold: Finished goods inventory, beginning



Th



Add : Cost of goods manufactured Goods available for sale



sh



Deduct : Finished goods inventory, ending Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Net operating income



7.



award:



1.50 out of 3 points



This study source was downloaded by 100000816569405 from CourseHero.com on 06-06-2021 00:37:45 GMT -05:00



https://www.coursehero.com/file/7354895/ACT-222-HM-CH-1/



$



$



500,000



20,000 290,000 310,000 40,000



270,000 230,000



80,000 110,000



190,000 $



40,000



Requirement 3: Assume that the company produced the equivalent of 10,000 units of product during the year just completed. What was the average cost per unit for direct materials? What was the average cost per unit for fixed manufacturing overhead? (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Average Cost per unit $12.8 per unit $10



Direct materials Fixed manufacturing overhead



Requirement 3: Assume that the company produced the equivalent of 10,000 units of product during the year just completed. What was the average cost per unit for direct materials? What was the average cost per unit for fixed manufacturing overhead? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)



Explanation:



$ $



Average Cost 12.8 per unit 9 per unit



is ar stu ed d vi y re aC s o ou urc rs e eH w er as o. co m



Direct materials Fixed manufacturing overhead



Direct materials: $128,000 ÷ 10,000 units = $12.80 per unit. Fixed manufacturing overhead: $90,000 ÷ 10,000 units = $9.00 per unit.



8.



award:



1.50 out of 3 points Requirement 4: Assume that the company expects to produce 15,000 units of product during the coming year. What average cost per unit and what total cost would you expect the company to incur for direct materials at this level of activity? For fixed manufacturing overhead? Assume that direct materials is a variable cost. (Round your "Average cost" to 2 decimal places. Omit the "$" sign in your response.) Average Cost per unit $12.8 per unit $7



Total Cost $192,000 $105,000



Th



Direct materials Fixed manufacturing overhead



sh



Requirement 4: Assume that the company expects to produce 15,000 units of product during the coming year. What average cost per unit and what total cost would you expect the company to incur for direct materials at this level of activity? For fixed manufacturing overhead? Assume that direct materials is a variable cost. (Round your "Average cost" to 2 decimal places. Omit the "$" sign in your response.) Direct materials Fixed manufacturing overhead



$ $



Average Cost 12.8 per unit 6 per unit



Explanation: This study source was downloaded by 100000816569405 from CourseHero.com on 06-06-2021 00:37:45 GMT -05:00



https://www.coursehero.com/file/7354895/ACT-222-HM-CH-1/



Total Cost $ 192,000 $ 90,000



Direct materials: Unit cost: $12.80 (unchanged) Total cost: 15,000 units × $12.80 per unit = $192,000. Fixed manufacturing overhead: Unit cost: $90,000 ÷ 15,000 units = $6.00 per unit. Total cost: $90,000 (unchanged)



9.



award:



0 out of 3 points Supply the missing data in the following cases. Each case is independent of the others. (Input all amounts as positive values. Omit the "$" sign in your response.) Case 1 Schedule of Cost of Goods Manufactured Direct materials Direct labor Manufacturing overhead



2



3



4



$6,000 3,000 4,000



$5,000 7,000 n/r



$3,000 4,000 9,000



18,500



n/r



20,000



n/r



2,500 n/r



n/r 1,000



Cost of goods manufactured



$18,000



$14,000



$n/r



$n/r



Income Statement Sales



$30,000



$21,000



$36,000



$40,000



Beginning finished goods inventory Cost of goods manufactured



1,000 18,000



2,500 14,000



n/r n/r



2,000 17,500



Goods available for sale Ending finished goods inventory



n/r n/r



n/r 1,500



n/r 4,000



n/r 3,500



Cost of goods sold



17,000



n/r



18,500



n/r



Gross margin Selling and administrative expenses



13,000



n/r



17,500



n/r



n/r



3,500



n/r



n/r



Net operating income



$4,000



$5,000



$9,000



is ar stu ed d vi y re aC s o ou urc rs e eH w er as o. co m



$4,500 n/r 5,000



$n/r



3,000 4,000



n/r 3,000



sh



Th



Total manufacturing costs Beginning work in process inventory Ending work in process inventory



Supply the missing data in the following cases. Each case is independent of the others. (Input all amounts as positive values. Omit the "$" sign in your response.) Case 1 Schedule of Cost of Goods Manufactured Direct materials Direct labor Manufacturing overhead



$4,500 9,000 5,000



2 $6,000 3,000 4,000



This study source was downloaded by 100000816569405 from CourseHero.com on 06-06-2021 00:37:45 GMT -05:00



https://www.coursehero.com/file/7354895/ACT-222-HM-CH-1/



3 $5,000 7,000 8,000



4 $3,000 4,000 9,000



Total manufacturing costs Beginning work in process inventory Ending work in process inventory



18,500



13,000



20,000



16,000



2,500 3,000



2,000 1,000



Cost of goods manufactured



$18,000



$14,000



Income Statement Sales



$30,000



$21,000



$36,000



$40,000



1,000 18,000



2,500 14,000



3,500 19,000



2,000 17,500



16,500 1,500



22,500 4,000



19,500 3,500



Beginning finished goods inventory Cost of goods manufactured Goods available for sale Ending finished goods inventory



19,000 2,000



4,500 3,000



3,000 4,000 $



19,000



$



17,500



Cost of goods sold



17,000



15,000



18,500



16,000



Gross margin Selling and administrative expenses



13,000



6,000



17,500



24,000



Net operating income



$4,000



9,000



12,500



is ar stu ed d vi y re aC s o ou urc rs e eH w er as o. co m



3,500



2,500



sh



Th



$



This study source was downloaded by 100000816569405 from CourseHero.com on 06-06-2021 00:37:45 GMT -05:00



https://www.coursehero.com/file/7354895/ACT-222-HM-CH-1/ Powered by TCPDF (www.tcpdf.org)



$5,000



15,000 $9,000