Additional answers:

Multiple choice 1
Total Manufacturing Cost 80,000
RM used 47,000

DL 28,000
Depreciation - FE 1,000
Factory rent 2,000
Factory insurance 500
Materials handling 1,500
OH 5,000

Multiple choice 7
COGS & COGM
DM used 100,000
DL 250,000
DL - Payroll taxes 30,000 280,000
OH
Factory supplies 6,000
Indirect labor 50,000
Machine maintenance and repair 10,000
Factory rent, light and power 24,000
Depreciation of machinery 10,000 100,000
TMC 480,000
WIP, beginning 30,000
TGPIP 510,000
WIP, ending 40,000
TGOGM 470,000
FG, beginning 50,000
TCGAS 520,000
FG, ending 60,000
TCOGS 460,000

PROBLEM 1-1

ACCOUNT TITLES DEBIT CREDIT

a. Materials 13,500
Accounts payable 13,500

b. Work in process-direct material 17,500

Materials 17,500

c. Factory overhead control 1,800

Materials 1,800
d. Payroll 27,000
Accrued payroll 27,000

Work in process-direct labor 17,000

Factory overhead control 2,000
Selling expense 5,000
Administrative expense 3,000
Payroll 27,000

e. Factory overhead control 2,508

Cash 2,508

f. Factory overhead control 8,500

Accounts payable 8,500

g. Work in process-Factory overhead 14,808

Factory overhead control 14,808

h. Finished goods 60,100

Work in process 60,100

i. Accounts receivable 75,000

Sales 75,000

Cost of goods sold 60,000

Finished goods 60,000

PROBLEM 1-16
Comments

Raw materials used 371,800 Account for the discounts on raw materials; must be deducted to get the net
purchases of raw materials
Direct labor 180,000

Factory - maintenance, power & heat, insurance, depreciation, superintendence,

Factory Overhead 222,500 indirect labor, factory supplies
TCGPIP 858,300
TCOGM 828,300
TGAFS 865,800
COGS 825,800