balance in Sedona Companys raw materials inventory account was $110
Schedule of Raw Materials Placed in Production. The balance in Sedona Company’s raw materials inventory account was $110,000 at the beginning of September and $135,000 at the end of September. Raw materials purchased during the month totaled $50,000. Sedona used $8,000 in indirect materials for the month. | |||||||
Required: | Unlocked Work Area: | ||||||
Prepare a schedule of raw materials placed in production for the month of September. [hint: See figure 1.7 in text] | |||||||
Sedona Company | |||||||
Schedule of Raw Materials Placed in Production | |||||||
Month Ended, September 30 | |||||||
Schedule of Cost of Goods Manufactured. The balance in Reid Company’s work-in-process inventory account was $300,000 at the beginning of March and $320,000 at the end of March. Manufacturing costs for the month follow. [hint: See figure 1.7 in text] | ||||||||
Direct materials (from the schedule of raw materials placed in production) | 40,000 | Unlocked Work Area: | ||||||
Direct labor | 70,000 | |||||||
Manufacturing overhead | 200,000 | |||||||
Required: | ||||||||
Prepare a schedule of cost of goods manufactured for the month of March. | ||||||||
Reid Company | ||||||||
Schedule of Cost of Goods Manufactured | ||||||||
Month Ended, March 31 | ||||||||
Schedule of Cost of Goods Sold. The balance in Blue Oak Company’s finished goods inventory account was $25,000 at the beginning of September and $28,000 at the end of September. Cost of goods manufactured for the month totaled $17,000. | |||||||
Required: | |||||||
Prepare a schedule of cost of goods sold for the month of September. [hint: See figure 1.7 in text] | Unlocked Work Area: | ||||||
Blue Oak Company | |||||||
Schedule of Cost of Goods Sold | |||||||
Month Ended, September 30 |
Income Statement. Auto Products, Inc., had the following activity for the month of October. | |||||||
Sales revenue | 1,100,000.00 | ||||||
Selling expenses | 300,000.00 | ||||||
General and administrative expenses | 230,000.00 | ||||||
Cost of goods sold | 475,000.00 | ||||||
Unlocked Work Area: | |||||||
Required: | |||||||
Prepare an income statement for the month of October. [hint: See figure 1.8 in text] | |||||||
Auto Products Inc | |||||||
Income Statement | |||||||
Month Ended, October 31 |
Income Statement and Supporting Schedules. The following financial information is for Industrial Company. (Note that the most current financial information is presented in the first column.) | ||||||||
31-Dec-17 | 31-Dec-16 | |||||||
Raw materials inventory | 24,000 | 30,000 | ||||||
Work-in-process inventory | 1,800,000 | 1,650,000 | ||||||
Finished goods inventory | 1,050,000 | 1,230,000 | ||||||
Of the total raw materials placed in production for the year, $36,000 was for indirect materials. Industrial had $3,795,000 in sales for the year ended December 31, 2017. The company also had the following costs for the year: | ||||||||
Selling | 270,000 | |||||||
General and administrative | 720,000 | |||||||
Raw materials purchases | 300,000 | |||||||
Direct labor used in production | 375,000 | |||||||
Manufacturing overhead | 1,890,000 | |||||||
Required: | ||||||||
1. Prepare a schedule of raw materials placed in production for the year ended December 31, 2017. | ||||||||
2. Prepare a schedule of cost of goods manufactured for the year ended December 31, 2017. | ||||||||
3. Prepare a schedule of cost of goods sold for the year ended December 31, 2017. | ||||||||
4. Prepare an income statement for the year ended December 31, 2017. | ||||||||
5. Describe the three types of costs included in cost of goods sold on the income statement. (Dollar amounts are not necessary in your descriptions.) | ||||||||
Industrial Company | Unlocked Work Area | |||||||
Schedule of Raw Materials Placed in Production | ||||||||
Year Ended, December 31, 2017 | ||||||||
Industrial Company | ||||||||
Schedule of Cost of Goods Manufactured | ||||||||
Year Ended, December 31, 2017 | ||||||||
Industrial Company | ||||||||
Schedule of Cost of Goods Sold | ||||||||
Year Ended, December 31, 2017 | ||||||||
Industrial Company | ||||||||
Income Statement | ||||||||
Year Ended, December 31, 2017 | ||||||||
5. Describe the three types of costs included in cost of goods sold on the income statement. (Dollar amounts are not necessary in your descriptions.) |