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# BALIWAG POLYTECHNIC COLLEGE

## MR. JOMAR V. VILLENA, CPA

Problem 1 - The balance sheet dated December 31, 2003, has a balance in the
Finished Goods Inventory account of \$26,200. The December 31, 2004, balance
sheet has a balance in the Finished Goods Inventory account of \$24,000. Work in
Process Inventory account has a beginning balance of \$20,000 and an ending
balance of \$30,000. If the cost of goods manufactured is \$340,000, how much is
cost of goods sold?

## Problem 2 -Alex Companys Work in Process Inventory account has a beginning

balance of \$60,000 and an ending balance of \$50,000. Current manufacturing
costs total \$200,000. How much is cost of goods manufactured?

## Problem 3 Hernandez, Inc. manufactures calculators. The company employs an

actual costing system. During May, Hernandezs transactions included the
following:
Direct labor cost incurred \$5,40
0
Total manufacturing overhead 6,650
cost How much is the cost of
Direct materials purchased 11,50 direct materials issued to
0 production during May?
Raw materials inventory, 160 How much is cost of goods
beginning manufactured for May?
Raw materials inventory, ending 280
Sales 23,00
0 Problem 4 Kenneth house
Selling expenses 2,100 Company uses an actual product
Work in process inventory, 220 costing system. It reported the
beginning following amounts for 2003:
Work in process inventory, \$72,0
Raw materials 250
Beginning work-in-process \$21,0
ending
purchased 00 inventory 00
70,0
Direct materials used Ending work-in-process inventory 16,000
00
4,0 Selling and administrative
Indirect materials used 23,000
00 expenses incurred
66,0 Other manufacturing overhead
Direct labor used 18,000
00 costs incurred
Indirect direct labor Beginning finished goods
7,000 6,000
used inventory
Ending finished goods inventory 9,000

## A. Calculate the cost of goods manufactured.

B. Calculate cost of goods sold.

## Problem 6 - Norris, Inc. manufactures calculators. Norris uses an actual costing

system. During June, Norriss transactions and accounts included the following:
Work in process inventory, \$8,80 Sales \$42,0
beginning 0 00
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## Work in process inventory, 7,500 Direct labor cost (3,100 55,00

ending hours) 0
Indirect materials issued from 3,600 Raw materials purchased 143,5
Supplies 00
Raw materials inventory, 4,600 Finished goods inventory, 12,30
beginning beginning 0
Raw materials inventory, ending 5,800 Finished goods inventory, 11,60
ending 0
Total manufacturing overhead 49,60 .
incurred 0

A. How much is the cost of direct materials issued to production during June?
B. Calculate the cost of goods manufactured.
C. How much is the cost of inventory on the May 31 st balance sheet?

## Problem 7 - Heath Company uses an actual product costing system. The

company reported the following amounts for 2003:
\$120,00
Raw materials purchased Direct labor used \$44,00
0
0
Beginning raw materials Manufacturing overhead
16,000 36,000
inventory costs incurred
Ending raw materials Selling and administrative
5,000 21,000
inventory expenses
Beginning finished goods Beginning work-in-process 17,00
11,000
inventory inventory 0
Ending finished goods Ending work-in-process
8,000 16,000
inventory inventory

## A. Calculate the cost of materials used in production.

B. Calculate the cost of goods manufactured.

## Problem 8 - Peters, Inc. manufactures homework machines. It uses an actual

costing system. Peter's keeps a 'Supplies' account for its indirect materials. During
June, Peters transactions and accounts included the following:
Finished goods inventory, \$11,60 Sales \$324,00
ending 0 0
Finished goods inventory, 12,300 Direct labor cost 72,400
beginning
Indirect materials issued to 3,200 Direct materials 178,000
production purchased
General administrative 9,400 Work in process inventory, 12,800
expenses ending
Raw materials inventory, 7,700 Work in process inventory, 10,500
ending beginning
Raw materials inventory, 5,100 Total manufacturing 56,100

## A. How much is cost of goods manufactured?

B. Calculate the cost of goods sold
C. How much will the company report as product costs on the June 30th balance
sheet?

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## Problem 9 - The manufacturing operations of Honcho, Inc. had the following

balances for the month of March:
Inventories 3/1/03 3/31/03
Raw Materials 10,000 12,000
Work in process 6,000 7,000
Finished goods 30,000 22,000
f Honcho transferred \$38,000 of completed goods out of work in process during
March, how much was the amount of the cost of goods sold?

## Problem 10 - Saman, Inc. manufactures coasters and uses an actual costing

system. During August, Samans accounts included the following balances and
transactions:
Work in process, beginning \$25,200
Work in process, ending 27,600
Finished goods beginning 7,300
Finished goods, ending 6,800
Direct labor cost incurred 20,400
Materials purchased 78,000
Raw materials, beginning 3,300
Direct materials used 76,400
Manufacturing overhead cost incurred 20,100
Sales 167,000
Marketing expenses 11,000

## A. How much is ending raw materials at August 31

B. How much is cost of goods manufactured?
C. How much is cost of goods sold?

## Problem 11 Deegan, Inc. manufactures weather machines and uses an actual

costing system. During June, Deegans accounts included the following balances
and transactions:
Raw materials inventory, \$ 70 Direct materials purchased \$45,000
beginning 0
Raw materials inventory, 4,850 Direct labor cost incurred 16,400
ending
cost incurred
Marketing expenses 11,00 Work in process inventory, 7,800
0 beginning
Sales 98,00 Work in process inventory, 6,600
0 ending

A. How much is the cost of direct materials issued to production during June?
B. How much is cost of goods manufactured?

Problem 12 Cost of goods manufactured equals \$44,000 for 2006. Finished goods
inventory is \$2,000 at the beginning of the year and \$5,500 at the end of the year.
Total manufacturing overhead is \$4,500. Beginning and ending work in process for
2006 are \$4,000 and \$5,000 respectively. How much is cost of goods sold for the
year?

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## Problem 13 Sound Company uses an actual costing system. It reported the

following amounts for May, 2006:
Raw materials purchased \$254,000
Beginning raw materials inventory 12,000
Ending raw materials inventory 7,900
Beginning finished goods inventory 7,400
Ending finished goods inventory 8,000
Direct labor incurred 51,000
Selling and administrative expenses 22,300
Actual manufacturing overhead costs 36,800
Beginning work-in-process inventory 15,100
Ending work-in-process inventory 12,000

## A. Calculate the cost of direct materials used in production.

B. Calculate the cost of goods manufactured.
C. How much will Sound report as total inventories on its May 31 balance sheet?

## Problem 14 - Eng Manufacturing Company developed the following data:

Beginning work in process inventory \$ 10,000
Direct materials used 150,000
Actual manufacturing overhead 85,000
Cost of goods manufactured 295,000
Ending work in process 15,000
How much are total manufacturing costs for the period?

## Problem 15 - The accounting records of Cinotti Manufacturing Company include

the following information:
Dec. 31, Dec. 31,
2004 2003
Work in process inventory \$ 15,000 \$ 12,000
Finished goods inventory 45,000 51,000
Materials purchased 331,000
Raw materials inventory ? 24,000
Direct materials used 325,000
Manufacturing overhead incurred 132,000
Direct labor 120,000
Selling expenses 70,000
Cinotti uses an actual cost system. Calculate the following:

## 1. Raw materials inventory at 12-31-04

2. Total manufacturing costs added to Work in Process Inventory during 2004
3. Cost of goods manufactured during 2004
4. Total inventories on Cinottis December 31, 2004 balance sheet
5. Assume CGM is \$500,000. How much is cost of goods sold for 2004?

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