ACCTG322 Study Guide - Quality Control, Finished Good, Gross Margin

255 views5 pages

violetchinchilla775

8 Apr 2014

School

University of Alberta

Department

Accounting

Course

ACCTG322

Professor

Trish Stringer

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

On january 30, 2013, the manufacturing facility of trucks r us was severely damaged by a fire. As a result, the company"s direct materials, work-in-process, and finished goods inventories were destroyed. The company did have access to certain incomplete accounting records, which revealed the following: Key ratios for the month of january 2013 are as follows: 70% of total manufacturing costs for the period. Ending work in process (wip) is always 10% of the total manufacturing costs for the period. All costs are incurred uniformly in the manufacturing process. Actual operations data for the month of january 2013: Prepare a statement of cost of goods manufactured (cogm). Calculate the total cost of inventory lost, identifying each category where possible (i. e. direct materials, work in process and finished goods) at january 31, 2013. Midterm review class #1. 2- plantwide versus departmental overhead rates; Don"t tell me we"ve lost another bid! exclaimed sandy kovallas, president of lenko products.

Related Questions

On April 12, after the close of business, Singh & Sons had a devastating fire that destroyed the companyâs work-in-process and finished-goods inventories. Fortunately, all raw materials escaped damage because materials owned by the firm were stored in another warehouse. The following information is available:


Sales revenue through April 12	$	340,000
Income before taxes through April 12		68,000
Direct labor through April 12		120,000
Cost of goods available for sale, April 12		285,000
Work-in-process inventory, January 1		21,000
Finished-goods inventory, January 1		35,000
Gross margin		30	% of sales

The firmâs accountants determined that the cost of direct materials used normally averages 25 percent of prime costs (i.e., direct material + direct labor). In addition, manufacturing overhead is 50 percent of the firmâs total production costs.

Required:

Singh & Sons is in the process of negotiating a settlement with its insurance company. Prepare an estimate of the cost of work-in-process and finished-goods inventories that were destroyed by the fire.


Cost of finished-goods inventory
Cost of work-in-process inventory

limesnake268

Statement of Cost of Goods Manufactured for a ManufacturingCompany

A payment of cash (or a commitment to pay cash in the future)for the purpose of generating revenues.Cost data for SanduskyManufacturing Company for the month ended January 31 are asfollows:

Inventories	January 1	January 31
Materials	$175,500	$154,440
Work in process	121,100	106,560
Finished goods	91,260	103,470

Direct labor		$315,900
Materials purchased during January		336,960
Factory overhead incurred during January:
	Indirect labor	33,700
	Machinery depreciation	20,360
	Heat, light, and power	7,020
	Supplies	5,620
	Property taxes	4,910
	Miscellaneous costs	9,130

a. Prepare a cost of goods manufacturedstatement for January.

Sandusky Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
Indirect laborMachinery depreciationSuppliesWork in processinventory, January 1			$
Direct materials:
Machinery depreciationMaterials inventory, January1SuppliesWork in process inventory, January 31	$
Indirect laborProperty taxesPurchasesWork in process inventory,January 31
Cost of materials available for useLess work in processinventory, January 31SuppliesWork in process inventory, January31	$
Indirect laborMaterials inventory, January 31MiscellaneouscostWork in process inventory, January 31
Cost of direct materials used in productionLess work in processinventory, January 31Materials inventory, January 1Totalmanufacturing costs		$
Direct laborIndirect laborMachinery depreciationSupplies
Factory overhead:
Indirect laborMaterials inventory, January 1Materialsinventory, January 31Purchases	$
Direct laborMachinery depreciationPurchasesWork in processinventory, January 31
Direct laborHeat, light, and powerMaterials inventory, January1Work in process inventory, January 31
Direct laborMaterials inventory, January1PurchasesSupplies
Materials inventory, January 31Property taxesPurchasesWork inprocess inventory, January 31
Direct materialsMiscellaneous costsPurchasesWork in processinventory, January 31
Total factory overhead
Total manufacturing costs incurred during January
Total manufacturing costs			$
Cost of materials available for useDirect materialsMaterialsinventory, January 31Work in process inventory, January 31
Cost of goods manufactured			$

Feedback

b. Determine the The cost of finished goodsavailable for sale minus the ending finished goods inventory.costof goods sold for January.

pearhamster523

The following information was taken from the accounting recordsof the Ross Manufacturing Company. Unfortunately, some of the datawere destroyed by a computer malfunction.

Case C

Sales 40,000

Finished goods inventory, January 1, 2012 5,000

Finished goods inventory, December 31, 2012 6,000

Cost of goods sold ?

Gross margin 15,000

Selling and administrative expenses ?

Net income 10,000

Work-in-process, January 1, 2012 ?

Direct material used 6,000

Direct labor 7,000

Factory overhead 10,000

Manufacturing costs incurred during 2012 ?

Work-in-process, December 31, 2012 4,000

Cost of goods manufactured ?

Direct materials inventory, January 1, 2012 1,000

Direct materials inventory, December 31, 2012 3,000

Direct materials purchased throughout 2012 8,000

Solve for the ? marks

chocolatecicada278

ACCTG322 Study Guide - Quality Control, Finished Good, Gross Margin

Document Summary

Get access

Related Documents

ACCTG322 Study Guide - Deutsche Luft Hansa, Quality Control, Finished Good

ACC 406 Study Guide - Midterm Guide: Gross Margin, Contribution Margin, The Buffet

ACC 100 Lecture Notes - Lecture 6: Total Absorption Costing, Operating Leverage, Gross Margin

Related Questions