1 The Zoe Corporation has the following information for the month March. Determi
ID: 2422012 • Letter: 1
Question
1 The Zoe Corporation has the following information for the month March. Determine the (a) cost of goods manufactured, and (b) cost of goods sold.
Cost of materials placed in production
$69,000
Direct labor
27,000
Factory overhead
34,000
Work in process, March 1
15,000
Work in process, March 31
19,500
Finished goods inventory, March 1
25,000
Finished goods inventory, March 31
23,000
2. Classify the following costs as direct, indirect, or neither:
a)
indirect labor incurred
b)
factory equipment depreciation
c)
indirect materials used
d)
office equipment depreciation
e)
direct materials used
f)
insurance expired on administrative facilities
g)
direct labor incurred
h)
administrative office salaries
i)
salespersons’ salaries
j)
utilities on factory building
k)
utilities on administrative facilities
3. Magnus Industries has the following data:
Beginning Raw Materials Inventory
$75,000
Materials purchased
$40,000
Ending Raw Materials Inventory
$60,000
Show how you would calculate Raw Materials Used.
4. Watson Company has the following data:
Work in Process, Beginning
$18,000
Work in Process, Ending
$25,000
Direct Labor costs incurred
$5,000
Cost of Goods Manufactured
$9,000
Factory Overhead
$7,000
Show how you would calculate the amount of Direct Materials Used.
5. Laramie Technologies had the following data:
Cost of Materials Used $50,000
Direct Labor costs $56,000
Factory Overhead $28,000
Work in Process, beg. $45,000
Work in Process, end. $32,000
Show your calculations to determine the Cost of Goods Manufactured.
6. Keeton Company had the following data:
Cost of Materials Used $60,000
Direct Labor costs $58,000
Factory Overhead $33,000
Work in Process, beg. $29,000
Work in Process, end. $18,000
Finished Goods,beg. $32,000
Finished Goods, end. $18,000
Show your calculations to determine the Cost of Goods Sold.
7. The Zoe Corporation has the following information for the month of March. Prepare a (a) schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) prepare only the inventory section of the balance sheet.
Purchases
$92,000
Materials inventory, March 1
6,000
Materials inventory, March 31
8,000
Direct labor
25,000
Factory overhead
37,000
Work in process, March 1
22,000
Work in process, March 31
23,500
Finished goods inventory, March 1
21,000
Finished goods inventory, March 31
30,000
Sales
257,000
Sales and administrative expenses
79,000
Cost of materials placed in production
$69,000
Direct labor
27,000
Factory overhead
34,000
Work in process, March 1
15,000
Work in process, March 31
19,500
Finished goods inventory, March 1
25,000
Finished goods inventory, March 31
23,000
Explanation / Answer
Requirement 1)
Requirement 2)
Requirement 3)
Requirement 4)
Requirement 5)
Requirement 6)
Requirement 7)
Cost of Goods Manufactured Schedule Particulars Amount (in $) Amount (in $) Cost of Materials Used 69,000 Direct Labour 27,000 Factory overhead 34,000 Total Manufacturing Cost 130,000 Add: Beginning work in process inventory, March 15,000 145,000 Less; Ending work in process inventory, March 31 19,500 Cost of Goods Manufactured 125,500 Cost of goods sold Beginning Finished Goods Inventry, March 1 25,000 Add: Cost of Goods Manufactured 125,500 Cost of Goods Available for Sale 150,500 Less:Ending Finished Goods Inventry, March 31 23,000 127,500Related Questions
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