CanyonCompan Rossings Company
Beginning finished goods inventory $ 9,000 $ 23,000
Beginning goods in process inventory 22,000 22,500
Beginning raw materials inventory 10,000 13,000
Rental cost on factory equipment 31,000 26,000
Direct labor 20,000 40,000
Ending finished goods inventory 16,500 13,500
Ending goods in process inventory 28,000 18,000
Ending raw materials inventory 6,500 10,400
Factory utilities 13,000 18,000
Factory supplies used 13,800 3,900
General and administrative expenses 18,000 48,000
Indirect labor 3,250 9,660
Repairs
CanyonCompan Rossings Company
Beginning finished goods inventory $ 9,000 $ 23,000
Beginning goods in process inventory 22,000 22,500
Beginning raw materials inventory 10,000 13,000
Rental cost on factory equipment 31,000 26,000
Direct labor 20,000 40,000
Ending finished goods inventory 16,500 13,500
Ending goods in process inventory 28,000 18,000
Ending raw materials inventory 6,500 10,400
Factory utilities 13,000 18,000
Factory supplies used 13,800 3,900
General and administrative expenses 18,000 48,000
Indirect labor 3,250 9,660
Repairs
Related questions
Marcelino Co.'s March 31 inventory of raw materials is $83,000.Raw materials purchases in April are $550,000, and factory payrollcost in April is $365,000. Overhead costs incurred in April are:indirect materials, $54,000; indirect labor, $27,000; factory rent,$35,000; factory utilities, $24,000; and factory equipmentdepreciation, $54,000. The predetermined overhead rate is 50% ofdirect labor cost. Job 306 is sold for $685,000 cash in April.Costs of the three jobs worked on in April follow. |
| Job 306 | Job 307 | Job 308 | ||||||||||||||||||||||||||||||
| Balances onMarch 31 | ||||||||||||||||||||||||||||||||
| Directmaterials | $ | 26,000 | $ | 37,000 | ||||||||||||||||||||||||||||
| Direct labor | 21,000 | 13,000 | ||||||||||||||||||||||||||||||
| Appliedoverhead | 10,500 | 6,500 | ||||||||||||||||||||||||||||||
| Costs duringApril | ||||||||||||||||||||||||||||||||
| Directmaterials | 138,000 | 215,000 | $ | 115,000 | ||||||||||||||||||||||||||||
| Direct labor | 104,000 | 154,000 | 104,000 | |||||||||||||||||||||||||||||
| Appliedoverhead | ? | ? | ? | |||||||||||||||||||||||||||||
| Status onApril 30 | Finished (sold) | Finished (unsold) | In process | |||||||||||||||||||||||||||||
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Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $390,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $29,000; factory rent, $34,000; factory utilities, $21,000; and factory equipment depreciation, $61,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $670,000 cash in April. Costs of the three jobs worked on in April follow.
| Job 306 | Job 307 | Job 308 | ||||||||||
| Balances on March 31 | ||||||||||||
| Direct materials | $ | 28,000 | $ | 39,000 | ||||||||
| Direct labor | 24,000 | 18,000 | ||||||||||
| Applied overhead | 12,000 | 9,000 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 133,000 | 220,000 | $ | 115,000 | ||||||||
| Direct labor | 105,000 | 154,000 | 102,000 | |||||||||
| Applied overhead | ? | ? | ? | |||||||||
| Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Required:
1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).
2. Prepare journal entries for the month of April to record the below transactions. (Hint, there are 13 steps)
Materials purchases (on credit).
Direct materials used in production.
Direct labor paid and assigned to Work in Process Inventory.
Indirect labor paid and assigned to Factory Overhead.
Overhead costs applied to Work in Process Inventory.
Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
Transfer of Jobs 306 and 307 to Finished Goods Inventory.
Cost of goods sold for Job 306.
Revenue from the sale of Job 306.
Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)
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Using the below financial statements, determine certainnumber of variable costs and a fixed costs for the month of Dec.2016 and calculate the following:
Breakeven point in units
Breakeven point in $S
Assume a target income and determine how many units you need tosell in order to make your target income.
LINDSEYâS LIP SETS
Schedule of Cost of Goods Manufactured
For the Year Ending December 31, 2016
Direct Materials: | |||
Beginning Raw Materials Inventory, Jan. 1 | $100,000 | ||
Plus: Net purchases of raw material | $200,000 | ||
Raw materials available | $300,000 | ||
Less: Ending raw materials inventory, Dec. 31 | $150,000 | ||
Raw materials transferred to production | $150,000 | ||
Direct Labor | $200,000 | ||
Manufacturing Overhead | |||
Indirect materials | $10,000 | ||
Indirectlabor | $45,000 | ||
FactoryDepreciation | $10,000 | $65,000 | |
Total manufacturing costs | $415,000 | ||
Beginning work in process inventory Jan.1 | $50,000 | ||
Cost of goods manufactured | $530,000 | ||
Less: Ending work in process inventory, Dec. 31 | $2,000 | ||
Cost of goods manufactured | $528,000 |
LINDSEYâS LIP SETS
Schedule of Cost of Goods Sold
For the Year Ending December 31 2016
Beginning finished goods inventory, Jan. 1 | $20,000 |
Plus: Cost of goods manufactured | $528,000 |
Goods available forsale | $548,000 |
Less: Finished goods inventory, Dec. 31 | $10,000 |
Cost of goodssold | $538,000 |
LINDSEYâS LIP SETS
Income Statement
For the Year Ending December 31 2016
Sales | $3,200,000 | ||
Cost of goods sold | $538,000 | ||
Gross profit | $2,662,000 | ||
Operating expenses | |||
Online shop selling | $24,000 | ||
General administrative | $10,000 | $34,000 | |
Net income | $2,628,000 |
