Principles of Accounting - Woodbridge Campus: ACC212-002W- Fall 2012 eChapter 18

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Principles of Accounting - Woodbridge Campus: ACC212-002W- Fall 2012

eChapter 18
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Exercise 18-9 Cost of goods manufactured and cost of goods sold computation L.O. P1, P2
[The following information applies to the questions displayed below.]

Using the following data,
Canyon
Company Rossings
Company
Beginning finished goods inventory $ 14,000 $ 18,450
Beginning goods in process inventory 16,500 21,950
Beginning raw materials inventory 9,250 11,000
Rental cost on factory equipment 29,000 24,750
Direct labor 21,000 37,000
Ending finished goods inventory 19,650 15,300
Ending goods in process inventory 24,000 18,000
Ending raw materials inventory 7,300 9,200
Factory utilities 11,000 14,000
Factory supplies used 10,200 5,200
General and administrative expenses 23,000 45,000
Indirect labor 3,250 9,660
Repairs

Explanation / Answer

Hi, Only Straight Line Method is mentioned in the question. So I am providing details for that only. Annual Depreciation for Each Year would be: = (48000-4000)/5 = 8800 Accumulated Depreciation Year 1 = 8800 Year 2 = 17600 Year 3 = 26400 Year 4 = 35200 Year 5 = 44000 Book Value Year 1 = 44000 - 8800 = 35200 Year 2 = 44000 - 17600 = 26400 Year 3 = 44000 - 26400 = 17600 Year 4 = 44000 - 35200 = 8800 Year 5 = 44000 - 44000 = 0 Thanks.

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