Problem 14-4A The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2017 Raw Materials Inventory $48,000 Factory Insurance $4,600 16,000 27,600 8,650 534,000 4,200 58,000 9,600 1,400 96,400 32,000 Materials Inventory 3,600 Depreciation Factory Machinery 6/30/17 Finished Goods Inventory 7/1/16 Finished Goods Inventory 6/30/17 Work in Process Inventory 7/1/16 Work in Process Inventory 6/30/17 96,000 Factory Utilities 75,900 Expense 19,800 Sals Revenue 18,600 Sales Discounts Office Utilities Plant Manager's Salary Direct Labor 139,250 Indirect Labor 24,460 Factory Property Accounts Receivable 27,000 Factory Repairs Raw Materials Cash Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) CLARKSON COMPANY Cost of Goods Manufactured Schedule
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Corporation is a private corporation formed for the purpose ofproviding the products and the services needed to irrigate farms,parks, commercial products, and private homes. It has a centrallylocated factory in a U.S. city that manufactures the products itmarkets to retail outlets across the nation. It also maintains adivision that provides installation and warranty servicing in sixmetropolitan areas. The month of November has just ended andWaterways needs to generate a cost of goods manufactured and costof goods sold for its income statement for the month. The followingdata is provided:
Accounts Receivable | $ 290,000 |
Advertising Expense | 52,000 |
Cash | 255,000 |
Depreciation â Factory Equipment | 17,500 |
Depreciation â Office Equipment | 2,900 |
Direct Labor | 44,000 |
Factory Supplies Used | 16,300 |
Factory Utilities | 10,500 |
Finished Goods Inventory â November 30 | 71,800 |
Finished Goods Inventory â October 31 | 73,500 |
Indirect Labor | 45,000 |
Office Supplies Expense | 1,900 |
Other Administrative Expenses | 71,000 |
Prepaid Expenses | 42,500 |
Raw Materials Inventory â November 30 | 53,000 |
Raw Materials Inventory â October 31 | 41,000 |
Raw Materials Purchases | 186,500 |
Rent â Factory Equipment | 45,000 |
Repairs â Factory Equipment | 5,400 |
Salaries | 335,000 |
Sales | 1,425,000 |
Sales Commissions | 42,750 |
Work In Process Inventory â November 30 | 44,000 |
Work In Process Inventory â October 31 | 51,000 |
Property Tax on Factory | 5,500 |
Instructions:
a. From the above information, preparea cost of goods manufactured schedule, an income statement, and thecurrent asset section of the balance sheet for WaterwaysCorporation for the month of November.
Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $22,000; factory rent, $36,000; factory utilities, $25,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow.
Job 306 | Job 307 | Job 308 | ||||||||||
Balances on March 31 | ||||||||||||
Direct materials | $ | 29,000 | $ | 36,000 | ||||||||
Direct labor | 24,000 | 15,000 | ||||||||||
Applied overhead | 12,000 | 7,500 | ||||||||||
Costs during April | ||||||||||||
Direct materials | 135,000 | 215,000 | $ | 115,000 | ||||||||
Direct labor | 103,000 | 151,000 | 103,000 | |||||||||
Applied overhead | ? | ? | ? | |||||||||
Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 19-1A Part 1
Required:
1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).
Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $22,000; factory rent, $36,000; factory utilities, $25,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow.
Job 306 | Job 307 | Job 308 | ||||||||||
Balances on March 31 | ||||||||||||
Direct materials | $ | 29,000 | $ | 36,000 | ||||||||
Direct labor | 24,000 | 15,000 | ||||||||||
Applied overhead | 12,000 | 7,500 | ||||||||||
Costs during April | ||||||||||||
Direct materials | 135,000 | 215,000 | $ | 115,000 | ||||||||
Direct labor | 103,000 | 151,000 | 103,000 | |||||||||
Applied overhead | ? | ? | ? | |||||||||
Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 19-1A Part 2
Materials purchases (on credit).
Direct materials used in production.
Direct labor paid and assigned to Work in Process Inventory.
Indirect labor paid and assigned to Factory Overhead.
Overhead costs applied to Work in Process Inventory.
Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
Transfer of Jobs 306 and 307 to Finished Goods Inventory.
Cost of goods sold for Job 306.
Revenue from the sale of Job 306.
Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)
2. Prepare journal entries for the month of April to record the above transactions. 1-13
Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $22,000; factory rent, $36,000; factory utilities, $25,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow.
Job 306 | Job 307 | Job 308 | ||||||||||
Balances on March 31 | ||||||||||||
Direct materials | $ | 29,000 | $ | 36,000 | ||||||||
Direct labor | 24,000 | 15,000 | ||||||||||
Applied overhead | 12,000 | 7,500 | ||||||||||
Costs during April | ||||||||||||
Direct materials | 135,000 | 215,000 | $ | 115,000 | ||||||||
Direct labor | 103,000 | 151,000 | 103,000 | |||||||||
Applied overhead | ? | ? | ? | |||||||||
Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 19-1A Part 3
3. Prepare a schedule of cost of goods manufactured.
Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $520,000, and factory payroll cost in April is $379,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $22,000; factory rent, $36,000; factory utilities, $25,000; and factory equipment depreciation, $58,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow.
Job 306 | Job 307 | Job 308 | ||||||||||
Balances on March 31 | ||||||||||||
Direct materials | $ | 29,000 | $ | 36,000 | ||||||||
Direct labor | 24,000 | 15,000 | ||||||||||
Applied overhead | 12,000 | 7,500 | ||||||||||
Costs during April | ||||||||||||
Direct materials | 135,000 | 215,000 | $ | 115,000 | ||||||||
Direct labor | 103,000 | 151,000 | 103,000 | |||||||||
Applied overhead | ? | ? | ? | |||||||||
Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Problem 19-1A Part 4
4.1 Compute gross profit for April.
4.2 Show how to present the inventories on the April 30 balance sheet.
Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms, parks, commercial products, and private homes. It has a centrally located factory in a U.S. city that manufactures the products it markets to retail outlets across the nation. It also maintains a division that provides installation and warranty servicing in six metropolitan areas. The month of November has just ended and Waterways needs to generate a cost of goods manufactured and cost of goods sold for its income statement for the month. The following data is provided:
Accounts Receivable | $ 275,000 |
Advertising Expense | 54,000 |
Cash | 260,000 |
Depreciation â Factory Equipment | 16,800 |
Depreciation â Office Equipment | 2,400 |
Direct Labor | 42,000 |
Factory Supplies Used | 16,800 |
Factory Utilities | 10,200 |
Finished Goods Inventory â November 30 | 68,800 |
Finished Goods Inventory â October 31 | 72,550 |
Indirect Labor | 48,000 |
Office Supplies Expense | 1,600 |
Other Administrative Expenses | 72,000 |
Prepaid Expenses | 41,250 |
Raw Materials Inventory â November 30 | 52,700 |
Raw Materials Inventory â October 31 | 38,000 |
Raw Materials Purchases | 184,500 |
Rent â Factory Equipment | 47,000 |
Repairs â Factory Equipment | 4,500 |
Salaries | 325,000 |
Sales | 1,350,000 |
Sales Commissions | 40,500 |
Work In Process Inventory â November 30 | 52,700 |
Work In Process Inventory â October 31 | 42,000 |
Property Tax on Factory | 5,500 |
Instructions:
From the above information, prepare a cost of goods manufactured schedule, an income statement, and the current asset section of the balance sheet for Waterways Corporation for the month of November.