SOQUIÑA, ABEGAIL INDIVIDUAL ASSIGNMENT

Problem No.1 Giant Manufacturing Co. Ltd

a) Prepare an answer sheet with the following column headings.

  ITEMS PRODUCT COSTS PERIOD COSTS
DIRECT DIRECT MANUFACTURIN
    MATERIAL LABOR G OVERHEAD  
1 RENT ON MANUFACTURING EQUIPMENT     X  
2 INSURANCE ON MANUFACTURING BUILDING     X  
3 RAW MATERIALS X      
4 UTILITY COST FOR MANUFACTURING FACILITY     X  
5 SUPPLIES FOR ADMINISTRATIVE OFFICE       X
WAGES FOR ASSEMBLY LINE WORKERS IN
6 MAN. FACILITY   X    
7 DEPRECIATION ON OFFICE EQUIPMENT       X
8 MISCELLANEOUS MATERIALS     X  
9 PROPERTY TAXES ON MANUFACTURING BLDG     X  
10 MANUFACTURING SUPERVISOR'S SALARY     X  
11 ADVERTISING FOR BICYCLES       X
12 SALES COMMISSIONS       X
13 DEPRECIATION ON MANUFACTURING BLDG     X  

b) Compute total manufacturing costs for the month.

  ITEM MANUFACTURING COST

$
1 RENT ON MANUFACTURING EQUIPMENT 2,000.00
$
2 INSURANCE ON MANUFACTURING BUILDING 750.00
$
3 RAW MATERIALS 80,000.00
$
4 UTILITY COST FOR MANUFACTURING FACILITY 1,000.00 80000 X 1000 bicycle
WAGES FOR ASSEMBLY LINE WORKERS IN $
5 MAN. FACILITY 30,000.00
$
6 MISCELLANEOUS MATERIALS 1,200.00 1.20 X 1000 bicycle
$
7 PROPERTY TAXES ON MANUFACTURING BLDG 200.00 2400/12 mos
$
8 MANUFACTURING SUPERVISOR'S SALARY 3,000.00
$
9 DEPRECIATION ON MANUFACTURING BLDG 1,500.00
$
  TOTAL MANUFACTURING COSTS 119,650.00
Problem 2. Agler Company
a) Prepare a cost of goods manufactured schedule for August 2010.

Agler Company
Cost of Goods Manufactured
For the month ended August 31, 2010

Work in Process, Beg $ 25,000.00

Direct Materials
Raw Materials Inv, Beg $ 19,500.00
Raw Materials Purchased $ 200,000.00
Raw Materials available
for use $ 219,500.00
Less: Raw Materials Inv,
End $ 30,000.00
Direct Materials $ 189,500.00
Direct Labor $ 160,000.00
Manufacturing Overhead
Rent Factory Facility $ 60,000.00
Deptreciation of Factory
Equipment $ 35,000.00
Indirect Labor $ 20,000.00
Factory Utilities Expense $ 6,000.00
Factory Insurance
Expense $ 3,500.00
Total Manufacturing
Overhead $ 124,500.00
Manufacturing Costs $ 474,000.00
$ 499,000.00

Less: Work in Process, End $ 21,000.00

Cost of Goods
Manufactured $ 478,000.00

**Factory Utilities 10000 x %60

Factory Insurance 5000 x %70
b) Prepare a correct income statement for August 2010.

Agler Company
Income Statement
For the month ended August 31, 2010
Sales $ 675,000.00
Finished Goods, Beg $ 40,000.00
Cost of Goods
Manufactured $ 478,000.00
Cost of Goods Avail $ 518,000.00
Less: Finished
Goods, End $ 64,000.00
COGS $ 454,000.00
Gross Profit $ 221,000.00
Operating Expenses
Advertising
Expenses $ 75,000.00
Selling and Admin
Exp $ 70,000.00
Depreciation
Equipment $ 50,000.00
Utilities Expense $ 4,000.00
Insurance Expense $ 1,500.00

Less: Total Expenses $ 200,500.00

Net Income $ 20,500.00

**Utilities Expenses 10000 x %40

Insurance Expenses 5000 x %30