Student Name:

Class:
Problem 16-03

SUPERIOR LOCKS, INC.

Computations

a. Purchases of direct materials

b. Cost of direct materials used:

Materials inventory, beginning of year
Add: Purchases of direct materials
Cost of materials available for use
Less: Materials inventory, end of year
Cost of direct materials used:

c. Direct labor costs assigned to production

d. Year-end liability for direct wages payable

e. Total manufacturing costs:

Direct materials used
Direct labor costs
Manufacturing overhead
Total manufacturing costs

f. Cost of finished goods manufactured

g. Ending inventory of work in process:

Work in process inventory, beginning of year
Add: Total manufacturing costs
Cost of all goods in process during the year
Less: Cost of finished goods manufactured
Work in process inventory, end of year

h. Cost of goods sold:

Beginning inventory of finished goods
Add: Cost of finished goods manufactured
Cost of goods available for sale
Less: Ending inventory of finished goods
Cost of goods sold

i. Total inventory at year-end:

Materials
Work in process
Finished goods
Total inventory
Given Data P16-03:

SUPERIOR LOCKS, INC.

Materials Inventory
Beg. Bal. $ 13,000
269,000 ?
Ending Bal. $ 17,000

Work in Process Inventory

Beg. Bal. $ 19,000
? $ 614,400
$ 134,000
214,400
Ending Bal. ?

Direct Labor
$ 131,300 $ 134,000
Ending Bal. $ 2,700

Finished Goods Inventory

Beg. Bal. $ 46,000
614,400 ?
Ending Bal. $ 53,400

Manufacturing Overhead
$ 214,400 $ 214,400

Cost of Goods Sold

?
 Student Name:
Class:
Problem 16-06

a. KITCHEN GADGET COMPANY

Schedule of the Cost of Finished Goods Manufactured -- Dicer Ricer
For the Year Ended ____

Work in process inventory, Jan. 1

Add: Manufacturing costs assigned to production:
Direct materials used
Direct labor assigned to production
Manufacturing overhead
Total manufacturing costs
Total cost of all goods in process during the year
Less: Work in process inventory, Dec. 31
Cost of finished goods manufactured

b. Unit cost of goods finished:

Cost of finished goods manufactured (part a)
Units manufactured
Unit cost

c. Cost of goods sold (62,100 units, FIFO basis):

3,000 units from finished goods inventory at Jan. 1
Add: 59,100 units manufactured (@ $13.1131 per unit)
Cost of goods sold

d. Inventory at December 31:

Materials:
Inventory at Jan. 1
Add: Purchases of direct materials
Total direct materials available during the year
Less: Direct materials used
Materials inventory at Dec. 31

Work in process inventory, Dec. 31

Finished goods:
Inventory at Jan. 1
Add: Cost of finished goods manufactured
Cost of finished goods available for sale
Less: Cost of goods sold
Finished goods inventory, Dec. 31
Total inventory appearing in the year-end balance sheet

Part e: Explain how the $180,000 in direct labor costs assigned to production affect the
company's income statement and balance sheet.
Given Data P16-06:

KITCHEN GADGET COMPANY

Purchases of direct materials $ 332,000

Direct materials used 333,600
Direct labor payrolls (paid during the year) 176,700
Direct labor costs assigned to production 180,000
Manufacturing overhead 288,000

Units manufactured 61,000

Units sold 62,100

Inventory information:
Dec. 31 Jan. 1
Materials $ ? $ 12,800
Work in process 4,700 3,000
Finished goods, Jan. 1 (3,000 units @ $13) ? 39,000
 Student Name:
Class:
Case 16-02

PRESCOTT MANUFACTURING

Current Last
Year Year
1. Cost of goods sold:
Inventory of finished goods, beginning of year
Add: Cost of finished goods manufactured
Cost of goods available for sale
Less: Inventory of finished goods, end of year
Cost of goods sold

2. Number of finished units manufactured:

Number of units in inventory at year-end
Add: Number of units sold during the year
Total units available for sale
Less: Number of units in inventory at beginning of year
Number of finished units manufactured

3. Average cost of goods manufactured:

Cost of finished goods manufactured
Add: Number of finished goods manufactured
Average cost per unit manufactured :

4. Average cost per unit sold:

Cost of goods sold
Number of units sold
Average cost per unit sold:

b. Evaluate the statements made by Walker. Comment specifically on Walker's

computation of the manufacturing cost of units sold and on whether it appears that
the reduction in the cost of finished goods sold was achieved through more
efficient operations.
Given Data C16-02:

PRESCOTT MANUFACTURING

Current Last
Year Year
Inventories of finished goods:
Beginning of the year $ 255,000 $ 85,000
Units 30,000 10,000
End of the year 202,000 255,000
Units 20,000 30,000
Cost of finished goods manufactured 909,000 1,020,000

Unit sales this year and last year $ 100,000

Cost of finished goods manufactured reduced by over $ 100,000
Manufacturing cost per unit sold - last year $ 10.20
Manufacturing cost per unit sold - this year $ 9.09