Student Name:

Class:
Problem 02-24

MERIWELL COMPANY Page 44: exhibit 2-4

Schedule of Cost of Goods Manufactured

Direct materials: Overhead costs=

Raw materials inventory, beginning $9,000 separate from
Add: Purchases of raw materials 125,000
Raw materials available for use 134,000 Total manafacturing costs:
Deduct: Raw materials inventory, ending 6,000
Raw materials used in production $128,000
Direct labor 70,000
Manufacturing overhead:
Depreciation, factory 27,000
Utilities, factory 8,000
Maintenance, factory 40,000
Supplies, factory 11,000
Insurance, factory 4,000
Indirect labor 15,000
Total overhead costs 105,000
Total manufacturing costs 303,000
Add: Work in process inventory, beginning 17,000
320,000
Deduct: Work in process inventory, ending 30,000
Cost of goods manufactured $290,000

MERIWELL COMPANY
Income Statement

Sales $500,000
Less cost of goods sold:
Finished goods inventory, beginning $20,000
Add: Cost of goods manufactured 290,000
Goods available for sale 310,000
Deduct: Finished goods inventory, ending 40,000 270,000
Gross margin 230,000
Less operating expenses:
Selling expenses 80,000
Administrative expenses 110,000 190,000
Net operating income $40,000

3. Equivalent units of product produced 10,000

Average cost per unit for direct materials $12.80 128000
Average cost per unit for factory depreciation 2.70 27000
direct materials is variable c
4. Equivalent units of product produced 15,000 factory is fixed cost
Average cost per unit for direct materials $12.80
Total cost for direct materials 192,000
Average cost per unit for factory depreciation 1.80
Total cost for factory depreciation 27,000
 separate from Direct labor

Total manafacturing costs: direct materials + d. labor + man. Overhead

direct materials is variable cost 12.80 X 15000

use the orginal total cost/new unit number
Given Data P02-24

MERIWELL COMPANY

Finished goods inventory, beginning $20,000

Finished goods inventory, ending 40,000
Depreciation, factory 27,000
Administrative expenses 110,000
Utilities, factory 8,000
Maintenance, factory 40,000
Supplies, factory 11,000
Insurance, factory 4,000
Purchase of raw materials 125,000
Raw materials inventory, beginning 9,000
Raw materials inventory, ending 6,000
Diredt labor 70,000
Indirect labor 15,000
Work in process inventory, beginning 17,000
Work in process inventory, ending 30,000
Sales 500,000
Selling Expenses 80,000

Check figure:
(1) Cost of goods manufactured $290,000
 Student Name:
Class:
Problem 02-26

SWIFT COMPANY
Schedule of Cost of Goods Manufactured
For the Month Ended August 31

Direct materials:
Raw materials inventory, August 1 $8,000
Add: Purchases of raw materials 165,000
Raw materials available for use 173,000
Deduct: Raw materials inventory, August 31 $13,000
Raw materials used in production $160,000
Direct labor 70,000
Manufacturing overhead:
Indirect labor cost $12,000
Utilities 9,000 60% of
Depreciation, factory equipment 21,000
Insurance 3,000 75%
Rent on facilities 40,000 80% of 50k
Total overhead costs 85,000
Total manufacturing costs 315,000
Add: Work in process inventory, August 1 16,000
331,000
Deduct: Work in process inventory, August 31 21,000
Cost of goods manufactured $310,000

SWIFT COMPANY
Income Statement
For the Month Ended August 31

Sales $450,000
Less cost of goods sold:
Finished goods inventory, August 1 $40,000
Add: Cost of goods manufactured 310,000
Goods available for sale 350,000
Deduct: Finished goods inventory, August 31 60,000 290,000
Gross margin 160,000
Less operating expenses:
Utilities 6,000
Depreciation, sales equipment 18,000
Insurance 1,000
Rent on facilities 10,000
Selling and administrative salaries 32,000
Advertising 75,000 142,000
Net operating income $18,000
Given Data P02-26:

SWIFT COMPANY
Income Statement
For the Month Ended August 31

Sales $450,000
Less operating expenses:
Indirect labor cost $12,000
Utilities 15,000
Direct labor cost 70,000
Depreciation, factory equipment 21,000
Raw materials purchased 165,000
Depreciation, sales equipment 18,000
Insurance 4,000
Rent on facilities 50,000
Selling and administrative salaries 32,000
Advertising 75,000 462,000
Net loss ($12,000)

Inventory balances:
August 1 August 31
Raw materials $8,000 $13,000
Work in process $16,000 $21,000
Finished goods $40,000 $60,000

Rent applied to factory overhead 80%

Rent applied to selling and admin. 20%
Insurance applied to factory overhead 75%
Insurance applied to selling and admin. 25%
Utilities applied to factory overhead 60%
Utilities applied to selling and admin. 40%

Check figure:
(1) Cost of goods manufactured $310,000
 Student Name:
Class:
Problem 02-28

VISIC CORPORATION
Schedule of Cost of Goods Manufactured

Direct materials:
Raw materials inventory, beginning
Add: Purchases of raw materials
Raw materials available for use
Deduct: Raw materials inventory, ending
Raw materials used in production
Direct labor
Manufacturing overhead:
Indirect labor
Building rent
Utilities, factory
Royalty on patent
Maintenance, factory
Rent on equipment
Other factory overhead costs
Total overhead costs
Total manufacturing costs
Add: Work in process inventory, beginning

Deduct: Work in process inventory, ending

Cost of goods manufactured

VISIC CORPORATION
Computations

2.a. Units in finished goods inventory

Total sales
Unit selling price
Units sold

Units in the finished goods inventory, beginning

Units produced during the year
Units available for sale
Units sold during the year
Units in the finished goods inventory, ending

2.b. Cost of units in finished goods inventory

COGM
Number of units produced
Cost per unit

Cost of units in finished goods inventory, ending

VISIC CORPORATION
 Income Statement

Sales
Less cost of goods sold:
Finished goods inventory, beginning
Add: Cost of goods manufactured
Goods available for sale
Finished goods inventory, ending
Gross margin
Less operating expenses:
Advertising
Entertainment and travel
Building rent
Selling and administrative salaries
Other selling and administrative expense
Net operating income
Given Data P02-28:

VISIC CORPORATION

Production in units $29,000

Sales in units ?
Ending finished goods inventory in units ?
Sales in dollars $1,300,000
Costs:
Advertising $105,000
Entertainment and travel $40,000
Direct labor $90,000
Indirect labor $85,000
Raw materials purchased $480,000
Building rent (production uses 80% of the space;
administrative and sales offices use the rest) $40,000
Utilities, factory $108,000
Royalty paid for use of production patent, $1.50
per unit produced ?
Maintenance, factory $9,000
Rent for special production equipment, $7,000 per
year plus $0.30 per unit produced ?
Selling and administrative salaries $210,000
Other factory overhead costs $6,800
Other selling and administrative expenses $17,000

Inventories: Beginning End of

of the Year theYear
Raw materials $20,000 $30,000
Work in process $50,000 $40,000
Finished goods $0 ?

Selling price per unit $50

Check figure:
(1) Cost of goods manufactured $870,000