Unit 2: Job Order Costing Module 3: Job Order Costing - Reports

Quality Apple Farms has gathered the following information from its accounting records: Beginning raw materials $20,000 Direct labor $40,000 Manufacturing overhead applied $30,000 Actual manufacturing overhead $25,000 Raw materials purchased $50,000 Ending raw materials inventory $10,000 Beginning work-in-process inventory $15,000 Ending work-in-process inventory $23,000 What is Quality Apple Farms' cost of goods manufactured?

$122k

Smartistry has the following information in its accounting records: Beginning finished goods inventory balance$120,000Ending finished goods inventory balance$80,000Beginning work-in-process inventory$40,000Ending work-in-process inventory$70,000Cost of goods manufactured$150,000 Based on the above balances, what is the amount of Smartistry's cost of goods sold?

$190k

Alliah Company has the following cost of goods sold calculation: Cost of Goods Sold Beginning finished goods inventory $120,000 Cost of goods manufactured 874,000 Cost of goods available for sale $994,000 Ending finished goods inventory (70,000) Unadjusted cost of goods sold $924,000 Underapplied manufacturing overhead (16,000) Adjusted cost of goods sold $908,000 There is an error in the above cost of goods sold calculation. What should the adjusted cost of goods sold number be?

$940k - the underapplied overhead should have been added to CoGS

Below are the financial data for Bullzai, Inc., for the year: Work-in-process inventory, ending balance130,000 Finished goods inventory, beginning balance100,000 Direct materials purchased355,000 Direct labor costs370,000 Actual manufacturing costs279,000 Finished goods inventory, ending balance120,000 Direct materials inventory, ending balance85,000 Work-in-process inventory, beginning balance125,000 Direct materials inventory, beginning balance70,000 Applied manufacturing overhead costs284,000 What is the total adjusted cost of goods sold?

$964k

Here are data for Corollary Marketing for the year: Finished goods inventory, ending balance 120,000 Direct materials inventory, ending balance 70,000 Work-in-process inventory, beginning balance 130,000 Work-in-process inventory, ending balance 125,000 Finished goods inventory, beginning balance 100,000 Direct materials purchased 355,000 Actual manufacturing overhead costs 284,000 Direct labor costs 340,000 Direct materials inventory, beginning balance 85,000 Applied manufacturing overhead costs 279,000 What is the total adjusted cost of goods sold?

$979k

Here are data for Ball Company for the year: Work-in-process inventory, ending balance 130,000 Finished goods inventory, beginning balance 100,000 Direct materials purchased 355,000 Direct labor costs 370,000 Actual manufacturing overhead costs 279,000 Finished goods inventory, ending balance 120,000 Direct materials inventory, ending balance 85,000 Work-in-process inventory, beginning balance 125,000 Direct materials inventory, beginning balance 70,000 Applied manufacturing overhead costs 284,000 What is the total cost of goods manufactured?

$989k

Here are data for Paradigm Company for the year: Finished goods inventory, ending balance 120,000 Direct materials inventory, ending balance 70,000 Work-in-process inventory, beginning balance 130,000 Work-in-process inventory, ending balance 125,000 Finished goods inventory, beginning balance 100,000 Direct materials purchased 355,000 Actual manufacturing overhead costs 284,000 Direct labor costs 340,000 Direct materials inventory, beginning balance 85,000 Applied manufacturing overhead costs 279,000 What is the total cost of goods manufactured?

$994k

Cost of Goods manufactured schedule definition

A schedule supporting the income statement that summarizes the total cost of goods manufactured and transferred out of the WIP inventory account during a period; these costs include direct materials, direct labor, and applied manufacturing overhead

Which numbers would not be included on a cost of goods manufactured schedule?

Actual manufacturing overhead costs are not included

When preparing a cost of goods manufactured schedule, raw materials used in production is calculated by which formula?

Adding together beginning raw materials inventory, raw materials purchased then subtracting the ending raw materials inventory

You have been provided with the following information by the cost accounting department at the end of the accounting period: the raw materials used during the period the direct labor cost incurred during the period the manufacturing overhead incurred or applied during the period Which of the above pieces of information is required to determine the cost of goods manufactured during the period?

All three pieces of information are required

Cost of Goods manufactured schedule flow

Begins with the cost of raw materials put into production and adds direct labor used in production during the period as well as the amount of overhead allocated to production during the period. These items are put into the WIP account with a debit. Once the change in beginning and ending inventory is factored in, the resulting credit to the WIP T account reflects the cost of the goods produced for the period

You have been provided the following information by the cost accounting department for the period: ending finished goods inventory overapplied manufacturing overhead beginning finished goods inventory What piece of information is missing from the above information that is required to determine the adjusted cost of goods sold for the period?

CoGM is missing

When finished goods are sold, which account is debited?

CoGS account

CoGS T-account breakdown

Debits indicate the costs put into production during the period, and credit represent the cost of goods manufactured (or finished) during the period

Which statement is correct when making the cost of goods sold calculation?

Overapplied manufacturing overhead is subtracted in the CoGS calculation

Which amounts are added together to calculate the total manufacturing costs on a cost of goods manufactured schedule?

Raw materials used in production, direct labor, and applied manufacturing overhead

You have been given the following manufacturing cost information by the cost accounting manager in the organization: the beginning raw materials inventory the raw materials inventory purchased during the period the ending raw materials inventory at the end of the period Which section of the cost of goods manufactured statement can you prepare with the above information?

The total raw materials used in production during the period

The cost of goods manufactured is added to

beginning finished goods inventory to arrive at cost of goods available for sale. The finished goods inventory is then subtracted to determine the unadjusted cost of goods sold. This number is adjusted for any overapplied or underapplied manufacturing overhead to arrive at the adjusted cost of goods sold

Knowing the total cost of goods manufactured makes it

easy to determine the total cost of goods sold

Cost of goods sold is not particularly useful for

management purposes

Cost of goods sold is important for

reporting on the IS for investors and creditors

Total cost of goods manufactured should only include

those costs that have gone through the WIP inventory account during the period