Activity 1 - Manufacturing Accounting Cycle

Due Monday, August 24, 2020, 1:00 PM

Time remaining: 4 days 23 hours
Submit your answers via PDF file with e-signature included. In case of manual answering, take a picture
of answers and compile it into one file only. 

Problem 1:

Weather guard manufactures mailboxes. The following data represent transactions and balances for
December 2013, the company’s first month of operations.

a.    Purchased direct material on account, $248,000

b.    Issued direct material to production, $186,000

c.    Accrued direct labor payroll, $134,000

d.    Paid factory rent, $3,600

e.    Accrued factory utilities, $16,200

f.     Recorded factory equipment depreciation, $15,800

g.    Paid factory supervisor salary, $6,400

h.    Ending work in process inventory (6,000 units), $35,000

i.      Ending finished goods inventory (3,000 units), ?

j.      Sales on account ($24 per unit), $648,000

Required: Answer the following.

·         How many units were sold in December?

·         How many units were completed in December?

·         What was the total cost of goods manufactured in December?

·         What was the per-unit cost of goods manufactured in December?

Problem 2:
The Work in Process Inventory account of Phelan Company increased $23,000 during November 2013.
Costs incurred during November included $24,000 of direct material, $126,000 of direct labor and
$42,000 for overhead. What is the Cost of goods manufactured during November?

Problem 3:

Antonio Company is a manufacturer of cockroach repellents. On December 31, 2019, the following
inventory balances are as follows:

Raw Materials Inventory, December 31, 2019                                      $242,500

Work in Process Inventory, December 31, 2019                                  $185,500

Finished Goods Inventory, December 31, 2019                                   $204,600

On 2020, sales made by Antonio totaled $2,081,700 and made a gross profit of 35% of cost of goods sold.
Raw material purchases made by Antonio equaled $1,132,500. Operating expenses incurred and paid by
the company was $239,700. Income tax rate for 2020 is 30%.

Additional information:

a)    Finished Goods Inventory and Work in Process Inventory on December 31, 2020 was 30% and 25% of
cost of goods sold, respectively.

b)    Prime cost totaled $1,600,000.

c)    Of the raw materials available for use, 20% were unused and others were put into process and used to
make finished goods.

d)    All raw material inventories are direct to the production process.

e)    Actual costing is used in accounting for overhead, based on the information above.

Required: Prepare the following:

·         Statement of cost of goods manufactured

·         Income statement (including the cost of goods sold computation)