ACC 110 Chapter Notes - Chapter 7: Inventory Control, Accounts Payable, Cash Flow

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greyrhinoceros682

1 Dec 2011

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Inventory: asset held for sales or assets used to produce goods that will be sold as part of the entity"s normal business activities. Include materials and supplies used to provide a service to customers. Raw materials: the inputs into the production process. For example, raw materials inventory for a furniture manufacturer includes wood used to build the furniture. Work-in-process (wip): inventory that partially completed on the financial statement data. Finished goods: inventory that has been completed and is ready for sale. One entity"s inventory is another"s equipment and one entity"s finished good is another"s raw material. Perpetual inventory control system: keeps an ongoing tally of purchases and sales of inventory, and the inventory account is adjusted to reflect change as they occur. It can determine cost of sales at any time. Accounts payable (liability +) or cash (asset -) When inventory is sold then record journal as: Dr. cash (asset +) or accounts receivable (asset +) xxx.

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Pirkl Corporation has providedthe following data for the month of March:

Inventories	Beginning		Ending
Raw materials	$	24,000	$	39,000
Work in process	$	13,000	$	20,000
Finished goods	$	46,000	$	35,000

Additional Information:


Raw materialspurchases	$	78,000
Direct laborcost	$	84,000
Manufacturingoverhead cost incurred	$	43,000
Indirect materialsincluded in manufacturing overhead cost incurred	$	6,400
Manufacturingoverhead cost applied to work in process	$	44,600

Required:
Prepare a Schedule ofCost of Goods Manufactured and a Schedule of Cost of Goods Sold.(Input all amounts as positive values. Omit the "$" sign inyour response.)

Schedule of Cost of Goods Manufactured
Directmaterials:
(Click to select)Beginning work inprocess inventoryBeginning finished goods inventoryEnding rawmaterials inventoryBeginning materials inventoryEnding work inprocess inventory	$
(Click to select)DeductAdd : (Clickto select)Ending work in process inventoryBeginning work in processinventoryFinished goods inventory, beginningPurchases of rawmaterialsRaw materials inventory, ending

Raw materials available for use
(Click to select)DeductAdd : (Clickto select)Ending work in process inventoryPurchases of rawmaterialsBeginning materials inventoryEnding raw materialsinventoryBeginning work in process inventory

Raw materials used in production
(Click to select)DeductAdd : (Clickto select)Beginning work in process inventoryindirect materialsincluded in manufacturing overhead incurredRaw materials inventory,endingEnding work in process inventoryRaw materials inventory,beginning
(Click toselect)Direct laborDirect materialsIndirect materialsIndirectlaborPurchase of raw materials		$
(Click to select)Rawmaterials inventory, endingEnding work in process inventoryRawmaterials inventory, beginningDirect laborPurchases of rawmaterials
(Click toselect)Manufacturing overhead applied to work in processinventoryBeginning work in process inventoryPurchases of rawmaterialsRaw materials inventory, beginningRaw materials inventory,ending

Total manufacturingcosts
(Click toselect)AddDeduct : (Click to select)Raw materials inventory,beginningRaw materials inventory, endingPurchases of rawmaterialsEnding work in process inventoryBeginning work in processinventory


(Click toselect)DeductAdd : (Click to select)Beginning work in processinventoryRaw materials inventory, beginningRaw materials inventory,endingPurchases of raw materialsEnding work in processinventory

Cost of goodsmanufactured		$

Schedule of Cost of Goods Sold
(Click toselect)Cost of goods manufacturedCost of goods available forsaleFinished goods inventory, endingOverapplied overheadFinishedgoods inventory, beginning	$
(Click toselect)DeductAdd : (Click to select)Unadjusted cost of goodssoldOverapplied overheadCost of goods manufacturedCost of goodsavailable for saleUnderapplied overhead

(Click toselect)Unadjusted cost of goods soldCost of goods available forsaleCost of goods manufacturedFinished goods inventory,beginningFinished goods inventory, ending
(Click toselect)AddDeduct : (Click to select)Overapplied overheadCost ofgoods manufacturedEnding finished goods inventoryUnderappliedoverheadCost of goods available for sale

(Click toselect)Finished goods inventory, beginningUnderappliedoverheadFinished goods inventory, endingUnadjusted cost of goodssoldCost of goods manufactured
(Click toselect)AddDeduct : (Click to select)Overapplied overheadCost ofgoods manufacturedUnderapplied overheadFinished goods inventory,endingCost of goods available for sale

Adjusted cost ofgoods sold	$

sangriaporpoise205

The following selected account balances are provided for Delray Mfg.


Sales	$	1,250,000
Raw materials inventory, Dec. 31, 2016		37,000
Work in process inventory, Dec. 31, 2016		53,900
Finished goods inventory, Dec. 31, 2016		62,750
Raw materials purchases		175,600
Direct labor		225,000
Factory computer supplies used		17,840
Indirect labor		47,000
Repairs—Factory equipment		5,250
Rent cost of factory building		57,000
Advertising expense		94,000
General and administrative expenses		129,300
Raw materials inventory, Dec. 31, 2017		42,700
Work in process inventory, Dec. 31, 2017		41,500
Finished goods inventory, Dec. 31, 2017		67,300

Prepare an income statement for Delray Mfg. (a manufacturer).

burgundypug413

*Please type out the answer.

The following data (in thousands of dollars) have been takenfrom the accounting records of Larden Corporation for thejust-completed year.

Sales	$950
Purchases of raw materials	$170
Direct labor	$225
Manufacturing overhead	$220
Administrative expenses	$180
Selling expenses	$140
Raw materials inventory, beginning	$90
Raw materials inventory, ending	$80
Work-in-process inventory, beginning	$30
Work-in-process inventory, ending	$20
Finished goods inventory, beginning	$100
Finished goods inventory, ending	$70

Prepare a Schedule of Cost of Goods Manufactured statement in thetext box below.

cyangnat414

ACC 110 Chapter Notes - Chapter 7: Inventory Control, Accounts Payable, Cash Flow

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