Cost Accounting (14th Edition)

ASSIGNMENT MATERIAL 57
Building depreciation $ 4,200
Purchases 260,000
General and administrative costs 32,000
Merchandise inventory, December 31, 2011 52,000
Merchandise freight-in 10,000
Purchase returns and allowances 11,000
Purchase discounts 9,000
Revenues 320,000
1. Compute (a) the cost of goods purchased and (b) the cost of goods sold.
2. Prepare the income statement for 2011.
Required
2-31 Flow of Inventoriable Costs. Renka’s Heaters selected data for October 2011 are presented here
(in millions):
Direct materials inventory 10/1/2011 $ 105
Direct materials purchased 365
Direct materials used 385
Total manufacturing overhead costs 450
Variable manufacturing overhead costs 265
Total manufacturing costs incurred during October 2011 1,610
Work-in-process inventory 10/1/2011 230
Cost of goods manufactured 1,660
Finished goods inventory 10/1/2011 130
Cost of goods sold 1,770
Calculate the following costs:
1. Direct materials inventory 10/31/2011
2. Fixed manufacturing overhead costs for October 2011
3. Direct manufacturing labor costs for October 2011
4. Work-in-process inventory 10/31/2011
5. Cost of finished goods available for sale in October 2011
6. Finished goods inventory 10/31/2011
2-32 Cost of finished goods manufactured, income statement, manufacturing company. Consider the following
account balances (in thousands) for the Canseco Company:
Required
A
B
C
1 Canseco Company Beginning of End of
2
2011 2011
3 Direct materials inventory
$22,000 $26,000
4 Work-in-process inventory
21,000
20,000
5 Finished goods inventory
18,000
23,000
6 Purchases of direct materials
75,000
7 Direct manufacturing labor
25,000
8 Indirect manufacturing labor
15,000
9 Plant insurance 9,000
10 Depreciation—plant, building, and equipment
11,000
11 Repairs and maintenance—plant
4,000
12 Marketing, distribution, and customer-service costs
93,000
13 General and administrative costs
29,000
1. Prepare a schedule for the cost of goods manufactured for 2011.
2. Revenues for 2011 were $300 million. Prepare the income statement for 2011.
Required