Managerial Accounting 1B cH14

Question
Managerial Accounting 1B

Financial and Managerial Accounting

Chapter 14

1.

Exercise 14-8 Cost of goods sold computation L.O. P1

Century
Merchandising

New Homes
Manufacturing

Beginning inventory

Merchandise

$

250,000

Finished goods

$

500,000

Cost of purchases

460,000

Cost of goods manufactured

886,000

Ending inventory

Merchandise

150,000

Finished goods

144,000

Compute cost of goods sold for each of these two companies for the year ended December 31, 2011. (Omit the “$” sign in your response.)

Cost of goods sold

Century Merchandising

New Homes Manufacturing

Exercise 14-9 Cost of goods manufactured and cost of goods sold computation L.O. P1, P2

[The following information applies to the questions displayed below.]

Using the following data,

Canyon
Company

Rossings
Company

Beginning finished goods inventory

$

14,000

$

18,450

Beginning goods in process inventory

16,500

21,950

Beginning raw materials inventory

9,250

11,000

Rental cost on factory equipment

29,000

24,750

Direct labor

21,000

37,000

Ending finished goods inventory

19,650

15,300

Ending goods in process inventory

24,000

18,000

Ending raw materials inventory

7,300

9,200

Factory utilities

11,000

14,000

Factory supplies used

10,200

5,200

General and administrative expenses

23,000

45,000

Indirect labor

3,250

9,660

Repairs—Factory equipment

6,780

3,500

Raw materials purchases

35,000

54,000

Sales salaries

52,000

48,000

Section Break

Difficulty: Hard

Exercise 14-9 Cost of goods manufactured and cost of goods sold computation L.O. P1, P2

Learning Objective: 14-P2 Prepare a manufacturing statement and explain its purpose and links to financial statements.

2.

Exercise 14-9 Part 1

1.

Compute the cost of goods manufactured for both Canyon Company and Rossings Company.(Omit the “$” sign in your response.)

Canyon Company

Rossings Company

Cost of goods manufactured

rev: 03-04-11

3.Exercise 14-9 Part 2

2.

Compute cost of goods sold for both Canyon Company and Rossings Company.(Omit the “$” sign in your response.)

Canyon Company

Rossings Company

Cost of goods sold

4.

Exercise 14-11 Manufacturing statement preparation L.O. P2

Given the following selected account balances of Randa Company.

Prepare its manufacturing statement for the year ended on December 31, 2011. (Input all amounts as positive values. Omit the “$” sign in your response.)

5.

Exercise 14-12 Income statement preparation L.O. P2

Following are the selected account balances of Randa Company:

Prepare an income statement for Randa Company (a manufacturer). Assume that its cost of goods manufactured is $546,390. (Input all amounts as positive values. Omit the “$” sign in your response.)

Problem 14-8A Manufacturing and income statements; inventory analysis L.O. P2

[The following information applies to the questions displayed below.]

The following calendar year-end information is taken from the December 31, 2011, adjusted trial balance and other records of Plaza Company.

Section Break

Problem 14-8A Manufacturing and income statements; inventory analysis L.O. P2

6.Problem 14-8A Part-1

Required:

1.

Prepare the company’s 2011 manufacturing statement.(Input all amounts as positive values. Omit the “$” sign in your response.)

7.Problem 14-8A Part-2

2.

Prepare the company’s 2011 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.(Input all amounts as positive values. Omit the “$” sign in your response.)

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