Question No.

16-5
Beginning merchandise inventory $7,900
Add: Purchases:
Purchases $39,000
Add: Freight In $2,900 $41,900
Cost of goods avaialable for sale $49,800
Less: Ending merchandise inventory ($4,900)
Cost of goods sold $44,900
Question No. 16-21
Boswell, Inc. Laura's Bakery Rustic Gear
Beginning work in process inventory $10,500 $40,500 $2,200
Direct material used $14,200 $35,200
Direct Labor $10,800 $35,200 $1,400
Manufacturing overhead $20,300 $10,500 $300
Total manufacturing cost incurred during the year $45,300 $121,400
Total manufacturing cost to account for $55,800 $161,900 $7,400
Ending work in process ($4,600) ($25,900) ($2,500)
Cost of goods manufactured $51,200 $136,000 $4,900
P 16-31A
Part 1
Fido Treats
Cost of goods manufactured
For the year ended December 31, 2014
Work in process - beginning $0
Raw material - beginning $13,400
Add: Raw materials purchases $33,000
Cost of raw material avaialble for use $46,400
Raw material - ending ($9,500)
Cost of material used $36,900
Direct labor $22,000
Manufacturing Overhead:
Plant janitorial services $800
Utilities for plant $1,600
Rent on plant $13,000 $15,400
Total manufacturing cost incurred during the year $74,300
Total manufacturing cost to account for $74,300
Ending work in process ($2,000)
Cost of goods manufactured $72,300
Part 2
Fido Treats
Income statement
For the year ended December 31, 2014
Sales revenue $109,000
Cost of goods sold:
Finished goods - beginning $0
Add: Cost of goods manufactured $72,300
Cost of goods available for sale $72,300
Finished goods - ending ($5,300)
Cost of goods sold $67,000
Gross Profit $42,000
Less: Selling and administrative expenses
Sales salaries $5,000
Delivery cost $1,700
Customer service hotline costs $1,400 $8,100
Operating income $33,900
Part 3
Part 4
Cost of goods manufactured $72,300
Units produced 18,075
Unit product cost $4.00
For the merchandiser company, there is no cost of goods manufactured as the goods
are purchased from the market. The cost of the goods sold consist of the finished
goods with the purchases and all of the other items in the income statement are the
same.