Accounting

Accounting

EX 19-2

a.

Cost of goods sold:

Sales $775,000

Less gross profit 265,000

Cost of goods sold $510,000

b.

Direct materials cost:

Materials purchased $303,000

Less: Indirect materials $ 32,000

Materials inventory 35,000 67,000

Direct materials cost $236,000

c.

Direct labor cost:

Total manufacturing costs for the period $620,000

Less: Direct materials cost $236,000

Factory overhead 112,500 348,500

Direct labor cost $271,500

EX 19-10

Predetermined overhead rate 1,400,000/30,625 = $45.71 per labor hour

EX 19-14

a. WRECKIN RONNIE, INC.

Income Statement

For the Month Ended July 31, 2008

Revenues $520,000

Cost of goods sold 301,300

Gross profit $218,700

Selling expenses $119,000

Administrative expenses 52,100 171,100

Income from operations $ 47,600

b. Materials inventory:

Purchased materials $165,800

Less: Materials used in production 147,600

Materials inventory, July 31 $ 18,200

Work in process inventory:

Materials used in production $147,600

Direct labor 96,250

Factory overhead (80% × $96,250) 77,000

Additions to work in process $320,850

Less: Transferred to finished goods 302,900

Work in process inventory, July 31 $ 17,950

Finished goods inventory:

Transferred to finished goods $302,900

Less: Cost of goods sold 301,300

Finished goods inventory, July 31 $ 1,600

PR 19-1A

Materials purchased to account, $233,000.

Raw Materials Inventory $233,000

Accounts Payable $233,000

Materials purchased on credit

__________________________________________________________________________

Materials requisitioned, $208,300, of which $5,600 was for general factory use.

Work In Process Inventory $202,700

Factory Overheads - Indirect materials $5,600

Raw Materials Inventory $208,300

Materials requisitioned and used - Indirect materials

$5,600

__________________________________________________________________________

Factory labor used, $190,500, of which $62,500 was indirect.

Work In Process Inventory $128,000