2.3 Review - The Cost of Goods Manufactured Schedule

The following information is taken from the records of Minnesota Company for the year ended January 31, 2012: Raw materials $ 64,000 Direct labor 24,000 Applied manufacturing overhead 88,000 Ending work-in-process inventory 40,000 Cost of goods manufactured 152,000

Answer: $16,000 The amount of beginning work-in-process inventory is:Answer: $16,000 Manufacturing costs: $64,000 + $24,000 + $88,000 = $176,000 Beginning work-in-process inventory: $176,000 + x - $40,000 = $152,000 x = $16,000

Michigan Motors has a beginning finished goods inventory of $81,600, cost of raw material purchases of $106,800, cost of goods manufactured of $176,400, and an ending finished goods inventory of $92,400. The cost of goods sold for this company is:

Answer: $165,600 Cost of goods sold: $81,600 + $176,400 - $92,400 = $165,600

The manufacturing operations of Beam Company had the following inventory balances for 2012: January 1 December 31 Raw materials $ 40,000 $48,000 Work-in-process 24,000 28,000 Finished goods 120,000 88,000 If Beam's cost of goods manufactured for 2012 was $152,000, what was Beam's cost of goods sold for the year?

Answer: $184,000 Cost of goods sold: $152,000 + $120,000 - 88,000 = $184,000

Costs incurred to manufacture goods during a period can be found in:

A cost of goods manufactured schedule

Garret Manufacturing Company's accounting records reflect the following inventories: Dec. 31, 2012 Dec. 31, 2011 Raw materials inventory $78,000 $66,000 Work-in-process inventory 90,000 48,000 Finished goods inventory 57,000 45,000 During 2012, $75,000 of raw materials were purchased, direct labor costs amounted to $90,000, and manufacturing overhead incurred was $120,000. Garret Manufacturing Company's cost of goods sold for the year 2012 is:

Answer: $219,000 Raw materials used: $66,000 + $75,000 - $78,000 = $63,000 Total manufacturing costs: $63,000 + $90,000 + $120,000 = $273,000 Cost of goods manufactured: $273,000 + $48,000 - $90,000 = $231,000 Cost of goods sold: $231,000 + $45,000 - $57,000 = $219,000

The schedule of cost of goods manufactured for the Cutler Company shows the following balances for the year ended July 31, 2012: Raw materials used in production $ 440,000 Direct labor 280,000 Applied manufacturing overhead 375,000 Ending work-in-process inventory 230,000 Cost of goods manufactured 1,125,000 The beginning work-in-process inventory was:

Answer: $260,000 Manufacturing costs: $440,000 + $280,000 + $375,000 = $1,095,000 Beginning work-in-process: $1,095,000 + x - $230,000 = $1,125,000 x = $260,000

Garret Manufacturing Company's accounting records reflect the following inventories: Dec. 31, 2012 Dec. 31, 2011 Raw materials inventory $78,000 $66,000 Work-in-process inventory 90,000 48,000 Finished goods inventory 57,000 45,000 During 2012, $75,000 of raw materials were purchased, direct labor costs amounted to $90,000, and manufacturing overhead incurred was $120,000. Garret Manufacturing Company's total manufacturing costs incurred in 2012 amounted to:

Answer: $273,000 Raw materials used: $66,000 + $75,000 - $78,000 = $63,000 Total manufacturing costs: $63,000 + $90,000 + $120,000 = $273,000

Delaware Manufacturing had the following information for March 2012: Beginning raw materials inventory $ 34,560 Beginning work-in-process inventory 23,040 Beginning finished goods inventory 31,240 General administrative expenses 43,200 Raw materials used 129,600 Indirect labor 24,000 Indirect materials 42,000 Depreciation-factory equipment 22,000 Direct labor 97,920 Applied manufacturing overhead 87,360 Ending work-in-process inventory 28,800 Ending finished goods inventory 66,240 Based on this information, the cost of goods manufactured is:

Answer: $309,120 Manufacturing costs: $129,600 + $97,920 + $87,360 = $314,880 Cost of goods manufactured: $314,880 + $23,040 - $28,800 = $309,120

Nester Company recorded the following data for 2012: January 1 December 31 Raw materials $57,200 $54,600 Work-in-process 41,600 33,800 Finished goods 52,000 65,000 Additional data: Sales revenue $468,000 Direct labor costs 78,000 Applied manufacturing overhead 182,000 Interest expense 59,800 Advertising expense 44,200 If raw materials costing $65,000 were purchased during the year, the total manufacturing costs for 2012 would be:

Answer: $327,600 Raw materials used: $57,200 + $65,000 - $54,600 = $67,600 Manufacturing costs: $67,600 + $78,000 + $182,000 = $327,600

Famous Furniture Manufacturing Company reported the following information for 2012: Beginning work-in-process inventory $182,000 Beginning raw materials inventory 66,500 Ending work-in-process inventory 157,500 Ending raw materials inventory 84,000 Raw materials purchased 136,500 Direct labor 130,200 Applied manufacturing overhead 84,000 Famous Furniture Manufacturing Company's cost of manufacturigng

Answer: $357,700 Raw materials used: $66,500 + $136,500 - $84,000 = $119,000 Manufacturing costs: $119,000 + $130,200 + $84,000 = $333,200 Cost of goods manufactured: $333,200 + $182,000 - $157,500 = $357,700

For June 2012, Mitsumi Exports' beginning work-in-process inventory is $1,000, ending work-in-process inventory is $3,000, and cost of goods manufactured is $34,000. What are the total manufacturing costs for June?

Answer: $36,000 Manufacturing costs: x + $1,000 - $3,000 = $34,000 x = $36,000

For 2012, Fli-Hi Woods' end-of-year information is as follows: Beginning raw materials inventory $ 9,120 Beginning work-in-process inventory 13,440 Direct labor 25,680 Applied manufacturing overhead 18,000 Raw materials purchased 36,000 Ending raw materials inventory 9,960 Ending work-in-process inventory 16,800 Based on this information, the cost of goods manufactured for Fli-Hi Woods is:

Answer: $75,480 Raw materials used: $9,120 + $36,000 - $9,960 = $35,160 Manufacturing costs: $35,160 + $25,680 + $18,000 = $78,840 Cost of goods manufactured: $78,840 + $13,440 - $16,800 = $75,480

The manufacturing operations of Sentinel Company had the following inventory balances for 2012: January 1 December 31 Raw materials $ 50,000 $ 60,000 Work-in-process 30,000 35,000 Finished goods 150,000 110,000 If Sentinel purchased $90,000 of raw materials during the year, the cost of raw materials used during 2012 would be:

Answer: $80,000 Raw materials used: $50,000 + $90,000 - x = $60,000 x = $80,000

Waterbed Factory has the following information for 2012: Beginning raw materials inventory $16,500 Beginning finished goods inventory 30,600 Ending finished goods inventory 26,700 Beginning work-in-process inventory 17,100 Ending work-in-process inventory 18,900 Ending raw materials inventory 12,000 Direct labor 37,900 Raw materials purchased 22,200 Applied manufacturing overhead 29,400 Based on this information, the cost of goods manufactured is:

Answer: $92,200 Raw materials used: $16,500 + $22,200 - $12,000 = $26,700 Manufacturing costs: $26,700 + $37,900 + $29,400 = $94,000 Cost of goods manufactured: $94,000 + $17,100 - $18,900 = $92,200

Which of the following inventory balances is not needed when preparing a cost of goods manufactured schedule?

Finished goods beginning inventory balance

Which of the following would not be found on a cost of goods manufactured schedule?

Finished goods inventory

Which of the following is not true about cost of goods manufactured?

Includes only current period costs

The formula for total manufacturing costs is:

Raw materials used + Direct labor costs + Applied manufacturing overhead

Which of the following is not true about total manufacturing costs?

Reflects changes in finished goods inventory

In the cost of goods sold calculation, overapplied manufacturing overhead is usually:

Subtracted from unadjusted cost of goods sold