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

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violetchinchilla775

8 Apr 2014

School

University of Alberta

Department

Accounting

Course

ACCTG322

Professor

Trish Stringer

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Document Summary

Midterm review class #1. 1- cogm; income statement, cost behaviour. 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). Manufacturing costs (see cogm statement) = dm + dl +oh. There is no raw materials inventory it is just dm inventory. Therefore there is no indirect consumption of raw materials. [1] given: moh = 40% of conversion costs.

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			$

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

pearhamster523

Passera Inc. manufactures a single product in a continuousprocessing environment. All materials are added at the beginning ofthe process, and conversion costs are applied evenly throughout theprocess. To assign costs to inventories, the company usesweighted-average process costing.

The following information was available for 2016:

Sales (selling price per unit, $40)		$4,080,000
Actual manufacturing overhead		660,000
Selling and administrative expenses		328,000

Unit costs of production:
Direct materials (1 kilogram)		$ 6.00
Direct labour (1/2 hour)		8.00
Overhead		9.00
Total		$23.00

Units transferred to finished goods		140,000 units
Materials purchased		125,000 kilograms
Materials used in process		136,000 kilograms

An inventory count at year end (December 31, 2016) revealed thatthe inventories had the following balances:

Raw materials		8,000 kilograms
Work in process (45% complete)		22,000 units
Finished goods		45,000 units

The January 1, 2016, work in process units are 70% complete. Theunit cost of production was the same in 2016 as it was in2015.

Calculate the following amounts for Passera Inc.:

1.The opening (January 1, 2016) balance in units and costs of(1) raw materials, (2) work in process, and (3) finished goods.

2.The equivalent units for 2016 for (1) materials and (2)conversion costs.

3.The total cost for 2016 for (1) materials used and (2)conversion applied.

4.Thecost of ending work in process for 2016.

5.The cost of units completed and transferred to finishedgoods.

limerabbit491

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

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