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21/Asteroid Industries accumulated the following cost information for the year:

Direct materials $ 15,100
Indirect materials 3,100
Indirect labor 7,600
Factory depreciation 11,900
Direct labor 36,100


Using the above information, total factory overhead costs would be:

Multiple Choice

$73,800.

$22,600.

$11,900.

$15,000.

$51,200.

22/Using the information below, calculate gross profit for the period:

Beginning Raw Materials Inventory $ 23,000
Ending Raw Materials Inventory 28,000
Beginning Work in Process Inventory 51,000
Ending Work in Process Inventory 60,000
Beginning Finished Goods Inventory 76,000
Ending Finished Goods Inventory 63,000
Cost of Goods Sold for the period 520,000
Sales revenues for the period 1,214,000
Operating expenses for the period 212,000

Multiple Choice

$694,000.

$482,000.

$1,002,000.

$181,000.

$707,000.

23/Use the following data to determine the cost of goods manufactured:

Beginning finished goods inventory $ 11,000
Direct labor 30,800
Beginning work in process inventory 7,400
General and administrative expenses 13,700
Direct materials used 40,700
Ending work in process inventory 9,200
Indirect labor 6,500
Ending finished goods inventory 9,700
Indirect materials 13,700
Depreciation—factory equipment 7,700

Multiple Choice

$111,300.

$97,600.

$101,200.

$114,900.

$102,500.

24/Using the information below for Laurels Company; determine the cost of goods manufactured during the current year:

Direct materials used $ 6,100
Direct Labor 8,100
Total Factory overhead 6,200
Beginning work in process 4,100
Ending work in process 6,200

Multiple Choice

$16,900.

$20,400.

$14,200.

$22,500.

$18,300.

25/Use the following data to compute total factory overhead costs for the month:

Sales commissions $ 10,900
Direct labor 39,700
Indirect materials 15,300
Factory manager salaries 7,300
Factory supplies 9,100
Indirect labor 6,400
Depreciation—office equipment 5,100
Direct materials 40,600
Corporate office salaries 42,600
Depreciation—factory equipment 7,600

Multiple Choice

$142,000.

$126,000.

$45,700.

$85,400.

$58,600.

Answer: 21. Total factory overhead costs would be $51,200.Calculation: Direct ...

The following cost data relate to Taylor Products Company for the year ended June 30, 2005.

Direct Materials                                                                      $ 55,600

Direct Labor                                                                                72,400

Factory Overhead                                                                       36,500

Work in process inventory, July 1, 2004                                     38,200

Work in process inventory, June 30, 2005                                  34,800

Required:

  1. Calculate the manufacturing costs for the year.
  2. Calculate the cost of goods manufactured for the year.

 

Ex 2-5: Iowa Products Company accumulated the following data for 2005.

                                                                                    Jan 1, 2005                 Dec 31, 2005

Inventories:

            Finished Goods                                               $ 52,000                      $ 54,000

            Work in Process                                                 29,600                         27,800

            Raw materials                                                    14,200                         15,000

Direct labor                                                                                                        95,000

Raw material purchase            s                                                                                     138,000

Indirect labor                                                                                                      15,300

Indirect materials and supplies                                                                                       10,800

Factory utilities                                                                                                   18,600

Depreciation expense- Factory                                                                                       14,000

Factory rent                                                                                                         18,000

Payroll taxes- Factory wages                                                                                8,100

Repairs and maintenance                                                                                      6,000

Insurance expense- Factory                                                                                  6,800

Miscellaneous factory expenses                                                                            5,200

Sales                                                                                                                  710,000

Sales discount                                                                                                     12,000

Selling expenses                                                                                                  95,600

General expenses                                                                                                75,300

Interest expenses                                                                                                   7,000

Required:

  1. Prepare a statement of cost of goods manufactured.
  2. Prepare an income statement (assume an income tax rate of 25%)

 

 

 

 

 

 

 

 

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