HW1:

(a) Cost of Goods Manufactured Schedule - Year Ended December 31, 2017

Description Amount

Beginning Work in Process Inventory $80,000

Direct Materials Used:

- Raw materials purchases $205,000

- Less: Ending raw materials inventory $20,000

= Direct materials used $185,000

Direct Labor $350,000

Manufacturing Overhead:

- Indirect materials $15,000

- Indirect labor $90,000

- Factory manager's salary $35,000

- Factory machinery rent $40,000

- Factory utilities $65,000

- Depreciation, factory building $24,000

- Property taxes, factory building $6,000

 - Insurance, factory $14,000

= Total manufacturing overhead $289,000

Total Manufacturing Costs $824,000

Less: Ending Work in Process Inventory $50,000

Cost of Goods Manufactured $774,000

(b) Income Statement - Year Ended December 31, 2017

Description Amount

Sales Revenue $1,500,000

Cost of Goods Sold:

- Beginning Finished Goods Inventory $110,000

+ Cost of Goods Manufactured $884,000

- Less: Ending Finished Goods Inventory $120,000

= Cost of Goods Sold $874,000

Gross Profit $626,000

Operating Expenses:

- Delivery expenses $100,000

 - Sales commissions $150,000

- Indirect labor $90,000

- Factory machinery rent $40,000

- Factory utilities $65,000

- Depreciation, factory building $24,000

- Property taxes, factory building $6,000

- Insurance, factory $14,000

- Administrative expenses $300,000

= Total Operating Expenses $789,000

(c) Current Assets - December 31, 2017

Description Amount

Cash $17,000

Accounts Receivable (net) $120,000

Prepaid Expenses $13,000

Short-Term Investments $26,000

Total Current Assets $176,000

HW2:
a) Cost of Goods Manufactured (COGM):
Break down of costs:
 Direct Materials Used: $120,000
 Direct Labor: $110,000
 Manufacturing Overhead:
o Factory supplies used: $25,000
o Depreciation on plant: $60,000
o Advertising expense: $45,000
o Property taxes on plant: $19,000
o Property taxes on store: $7,500
o Delivery expense: $21,000
o Labor costs of sales clerks: $50,000
o Sales commissions: $35,000

Manufacturing Overhead = Factory supplies used + Depreciation on plant = $25,000 +

$60,000 = $85,000

COGM = $10,000 (Beginning WIP) + $120,000 (Materials) + $110,000 (Labor) +

$85,000 (MO) - $14,000 (Ending WIP) = $321,000

b) Cost of Goods Sold (COGS):

- COGM: $321,000
- Beginning Finished Goods Inventory: $60,500
- Ending Finished Goods Inventory: $50,600

COGS = $321,000 + $60,500 - $50,600 = $330,900