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W Duration Definition & Exam M Chapter 2 Hw a F red Inco me Securities ppi | (1)

ID: 2416498 • Letter: W

Question

W Duration Definition & Exam M Chapter 2 Hw a F red Inco me Securities ppi | (1) Are High-Yeld Bonds Toc Oetomheducation.com/hn tp Superior Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials) Selling expenses $210,000 265,000 Purchases of raw materials Direct labor 151,000 Administrative expenses Manufacturing overhead applied to work in process Total actual manufacturing overhead costs $337.000 354,000 Inventory balances at the beginning and end of the year were as Beginning of Year End of Year 56,000 $36,000 Raw materials Work in process Finished goods ? $27000 40,000 The total manufacturing costs for the year were S670,000, the cost of goods available for sale totaled he net operating income was $31,000 745.000, the unadjusted cost of goods sold totaled $666 000 and t The company's overapplied or underappled overhead is closed entirely to Cost of Goods Sold Required a. Prepare a schedule of cost of goods manufactured Direct materials

Explanation / Answer

Schedule of goods manufactured

opening direct materilas       56,000

add:Purchases                    265,000

cost of materials available 321,000

less:closing                         36,000

cost of raw materials used                                               $285,000

Direct labor                                                                            48,000

Manufacturing overhead                                                    337,000

total manufactruing cost                                                    670,000

Add:Opening WIP                                                                62,000

                                                                                              732,000

less :Closing WIP                                                                 27,000

total cost of goods manufactured                                     705,000

Cost of goods sold

Finished goods inventory , begniing                                        $40,000

Add:Cost of goods manufactrued                                            705,000

Cost of goods avaialble for sale                                              745,000

Less:Finished goods inventory                                                 79,000

Unadjusted cost of goods sold                                               666,000

Add:Underapplied overhead                                                      17,000

Adjusted cost of goods sold                                                  683,000

Incomes Statment

Sales                                                                              $1,075,000

Cost of goods sold                                                           683,000

Gross margin                                                                     392,000

Selling and administrative expense

Administrative exepnse                       151,000

Selling expense                                     210,000             361,000

Net operating income                                                        31,000

Schedule of goods manufactured

opening direct materilas       56,000

add:Purchases                    265,000

cost of materials available 321,000

less:closing                         36,000

cost of raw materials used                                               $285,000

Direct labor                                                                            48,000

Manufacturing overhead                                                    337,000

total manufactruing cost                                                    670,000

Add:Opening WIP                                                                62,000

                                                                                              732,000

less :Closing WIP                                                                 27,000

total cost of goods manufactured                                     705,000