Incomplete manufacturing costs, expenses, and also selling data fortwo different cases are as follows.

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(a)

Indicate the absent amount for each letter.

Case

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2

Direct materials used$9,600

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Direct labor5,0008,000
Manufacturing overhead8,0004,000
Total production costs

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16,000
Beginning work-related in procedure inventory1,000

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Ending occupational in process inventory

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3,000
Sales revenue24,500

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Sales discounts2,5001,400
Cost of items manufactured17,00022,000
Beginning finished items inventory

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3,300
Goods obtainable for sale20,000

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Cost of products sold

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Ending finished products inventory3,4002,500
Gross profit

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7,000
Operating expenses2,500

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Net income

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5,000

b) Prepare a condensed cost of goods manaufactures schdule fforCase1

c1) Prepare an revenue statement for instance 1

c2) Prepare the existing assets section of the balance paper forCase1. Assume the in case 1 the other items in the existing assetssection are as follows: Cash $4,000, Receivables (net) $15,000, RawMaterials $600 and also Prepaid prices $400.


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answer #1
Concepts and also reason

Cost: The approximated figure that various expenses related to the manufacturing of the merchandise is cost. The price which has actually a straight relation to the product is a direct cost. The product which has actually an indirect relation to the product is one indirect cost. Both costs include the expense of material, labor, and also expenses.


Fundamentals

Direct material: It is among the product expense which has a direct relation come the manufacture of the product. The raw product is the simple requirement to produce the perfect goods. The expense of direct material can be straight chargeable come the final product as contrasted to the indirect material.

Direct labor: It is one of the conversion cost which is forced to transform the raw product inventory into finished items inventory. Straight labor deserve to be directly traceable come a specific product or cost center. In various other words, the expense of the employees which is directly connected in the change of the life material right into the perfect product.

Manufacturing overheads: It is an indirect price which is compelled for production. It contains the price of indirect material, indirect labor, and also indirect expenses. The prices such as depreciation top top machines, foreman salary, electricity prices of the factory are share under manufacturing overhead.

Manufacturing cost: The cost and expenses occurs to create the inventory are contained in production cost. It consists of the prime cost and manufacturing overheads. The prime expense is the an initial cost occurs on production and also it includes the expense of direct material, expense of straight labor and also cost of direct expenses.

Work-in-progress inventory: The inventory which has been perfect in manufacturing are work-in-progress inventory. The process of manufacturing has used to the raw material however it has not been completed. It has the lot of straight material, direct labor, and also expenses which space incurred in the manufacturing of this perform till yet.

Sales: It is the main revenue the the organization. Various expenses, solved expenses and adjustment the inventory come be done from the sales revenue. The is computed by multiply the units sold and also selling price every unit.

Finished items inventory: The inventory i beg your pardon is perfect in manufacturing and obtainable for sale. The finished items cost has the prime cost, production overheads, and management overheads.

Gross profit: It is the very first profit earned after ~ reducing the cost of inventory marketed from the sales. The non-operating costs are not yet decreased from the pistol profit.

Operating expenses: The cost and also expenses which are compelled to run the business and generate revenue.

Net income: It is the income earned by reducing every operating and non-operating expenses from the sales revenue. Alternatively, non-operating expenses to it is in deducted native gross profit to recognize net income.

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(a.1)

Compute full manufacturing expense of case 1 as given below:

Totalmanufacturingcost=(Directmaterial)+(Directlabor)+(Manufacturingoverhead)=$9,600+$5,000+$8,000=$22,600\beginarrayc\\\rmTotal manufacturing cost = \left( \rmDirect material \right) + \left( \rmDirect labor \right) + \left( \rmManufacturing overhead \right)\\\\ = \$ 9,600 + \$ 5,000 + \$ 8,000\\\\ = \$ 22,600\\\endarrayTotalmanufacturingcost=(Directmaterial)+(Directlabor)+(Manufacturingoverhead)=$9,600+$5,000+$8,000=$22,600​

(a.2)

Compute the ending work-in-progress (WIP) perform of case 1 as offered below:

Costofgoodsmanufactured=(Totalmanufacturingcost)+(BeginningWIPinventory)−(EndingWIPinventory)EndingWIPinventory=(Totalmanufacturingcost)+(BeginningWIPinventory)−(Costofgoodsmanufactured)=$22,600+$1,000−$17,000=$6,600\beginarrayc\\\rmCost of goods manufactured = \left( \rmTotal manufacturing cost \right) + \left( \rmBeginning WIP inventory \right)\\\\ - \left( \rmEnding WIP inventory \right)\\\\\rmEnding WIP inventory = \left( \rmTotal production cost \right) + \left( \rmBeginning WIP inventory \right)\\\\ - \left( \rmCost of products manufactured \right)\\\\ = \$ 22,600 + \$ 1,000 - \$ 17,000\\\\ = \$ 6,600\\\endarrayCostofgoodsmanufactured=(Totalmanufacturingcost)+(BeginningWIPinventory)−(EndingWIPinventory)EndingWIPinventory=(Totalmanufacturingcost)+(BeginningWIPinventory)−(Costofgoodsmanufactured)=$22,600+$1,000−$17,000=$6,600​

(a.3)

Compute the beginning inventory of finished products in instance 1.

Beginningfinishedgoodsinventory=(Goodsavailableforsale)−(Costofgoodsmanufactured)=$20,000−$17,000=$3,000\beginarrayc\\\rmBeginning finished products inventory = \left( \rmGoods obtainable for sale \right)\\\\ - \left( \rmCost of items manufactured \right)\\\\ = \$ 20,000 - \$ 17,000\\\\ = \$ 3,000\\\endarrayBeginningfinishedgoodsinventory=(Goodsavailableforsale)−(Costofgoodsmanufactured)=$20,000−$17,000=$3,000​

(a.4)

Compute the price of inventory sold in instance 1 as offered below:

Costofgoodssold=(Goodsavailableforsale)−(Endingfinishedgoodsinventory)=$20,000−$3,400=$16,600\beginarrayc\\\rmCost of products sold = \left( \rmGoods accessible for sale \right) - \left( \rmEnding finished products inventory \right)\\\\ = \$ 20,000 - \$ 3,400\\\\ = \$ 16,600\\\endarrayCostofgoodssold=(Goodsavailableforsale)−(Endingfinishedgoodsinventory)=$20,000−$3,400=$16,600​

(a.5)

Compute gross benefit of case 1 as offered below:

Grossprofit=(Salesrevenue)−(Salesdiscount)−(Costofgoodssold)=$24,500−$2,500−$16,600=$5,400\beginarrayc\\\rmGross profit = \left( \rmSales revenue \right) - \left( \rmSales discount \right) - \left( \rmCost of items sold \right)\\\\ = \$ 24,500 - \$ 2,500 - \$ 16,600\\\\ = \$ 5,400\\\endarrayGrossprofit=(Salesrevenue)−(Salesdiscount)−(Costofgoodssold)=$24,500−$2,500−$16,600=$5,400​

(a.6)

Compute net income of situation 1 as given below:

Netincome=Grossprofit−Operatingexpenses=$5,400−$2,500=$2,900\beginarrayc\\\rmNet income = \rmGross profit - \rmOperating expenses\\\\ = \$ 5,400 - \$ 2,500\\\\ = \$ 2,900\\\endarrayNetincome=Grossprofit−Operatingexpenses=$5,400−$2,500=$2,900​

(a.7)

Compute start work-in-progress list of instance 2 as offered below:

Costofgoodsmanufactured=(Totalmanufacturingcost)+(BeginningWIPinventory)−(EndingWIPinventory)BeginningWIPinventory=(Costofgoodsmanufactured)−(Totalmanufacturingcost)+(EndingWIPinventory)=$22,000−$16,000+$3,000=$9,000\beginarrayc\\\rmCost of items manufactured = \left( \rmTotal production cost \right) + \left( \rmBeginning WIP inventory \right)\\\\ - \left( \rmEnding WIP inventory \right)\\\\\rmBeginning WIP inventory = \left( \rmCost of goods manufactured \right) - \left( \rmTotal manufacturing cost \right)\\\\ + \left( \rmEnding WIP inventory \right)\\\\ = \$ 22,000 - \$ 16,000 + \$ 3,000\\\\ = \$ 9,000\\\endarrayCostofgoodsmanufactured=(Totalmanufacturingcost)+(BeginningWIPinventory)−(EndingWIPinventory)BeginningWIPinventory=(Costofgoodsmanufactured)−(Totalmanufacturingcost)+(EndingWIPinventory)=$22,000−$16,000+$3,000=$9,000​

(a.8)

Determine the price of goods available for revenue of case 2 as provided below:

Goodsavailableforsale=(Costofgoodsmanufactured)+(Beginningfinishedgoodsinventory)=$22,000+$3,300=$25,300\beginarrayc\\\rmGoods obtainable for sale = \left( \rmCost of items manufactured \right)\\\\ + \left( \rmBeginning finished items inventory \right)\\\\ = \$ 22,000 + \$ 3,300\\\\ = \$ 25,300\\\endarrayGoodsavailableforsale=(Costofgoodsmanufactured)+(Beginningfinishedgoodsinventory)=$22,000+$3,300=$25,300​

(a.9)

Determine the expense of products sold in situation 2 as given below:

Costofgoodssold=(Goodsavailableforsale)−(Endingfinishedgoodsinventory)=$25,300−$2,500=$22,800\beginarrayc\\\rmCost of products sold = \left( \rmGoods obtainable for sale \right) - \left( \rmEnding finished goods inventory \right)\\\\ = \$ 25,300 - \$ 2,500\\\\ = \$ 22,800\\\endarrayCostofgoodssold=(Goodsavailableforsale)−(Endingfinishedgoodsinventory)=$25,300−$2,500=$22,800​

(a.10)

Compute the lot of sales revenue of case 2 as offered below:

Salesrevenue=(Costofgoodssold)+(Salesdiscount)+(Grossprofit)=$22,800+$1,400+$7,000=$31,200\beginarrayc\\\rmSales revenue = \left( \rmCost of goods sold \right) + \left( \rmSales discount \right) + \left( \rmGross profit \right)\\\\ = \$ 22,800 + \$ 1,400 + \$ 7,000\\\\ = \$ 31,200\\\endarraySalesrevenue=(Costofgoodssold)+(Salesdiscount)+(Grossprofit)=$22,800+$1,400+$7,000=$31,200​

(a.11)

Determine operating expenses of instance 2 as offered below:

Operatingexpenses=Grossprofit−Netincome=$7,000−$5,000=$2,000\beginarrayc\\\rmOperating expenses = \rmGross profit - \rmNet income\\\\ = \$ 7,000 - \$ 5,000\\\\ = \$ 2,000\\\endarrayOperatingexpenses=Grossprofit−Netincome=$7,000−$5,000=$2,000​

(b)

Prepare the condensed expense of goods manufactured for case 1 as provided below:

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Prepare the condensed expense of products manufactured for case 1 making use of spreadsheet formulas as offered below:

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(c.1)

Prepare the earnings statement for instance 1 as offered below:

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Prepare the income statement for case 1 using spreadsheet recipe as provided below:

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(c.2)

Prepare the ar of existing assets for situation 1 as offered below:

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Prepare the section of existing assets for situation 1 using spreadsheet recipe as offered below: