Basic Accounting for Manufacturing OperationsExercises Exercise 1 Southern Manufacturing CorporationStatement of Cost of Goods ManufacturedFor the Year Ended June 30, 2008 Raw materials
Trang 1Basic Accounting for Manufacturing Operations
Exercises
Exercise 1
Southern Manufacturing CorporationStatement of Cost of Goods ManufacturedFor the Year Ended June 30, 2008
Raw materials used
Less: Raw materials inventory, June 30, 2008 340,000
Factory overhead
Depreciation – machinery and equipment 100,000
Factory insurance expense 14,400 758,800
Trang 2Exercise 2
Requirement (1)
Cookie FactoryStatement of Cost of Goods ManufacturedFor the Year Ended December 31, 2008
Raw materials used
Less: Raw materials inventory, December 31 540,000
Add: Work in process inventory, January 1, 2008 860,000
Less: Work in process inventory, December 31, 2008 840,000
Trang 3Requirement (2)
Cookie FactoryStatement of IncomeFor the Year Ended December 31, 2008
Less: Sales Returns and Allowances P 86,000
Less: Cost of Sales
Store Supplies Expense 16,800
Administrative Expenses
Add (Deduct) Other Income (Expenses)
Trang 4Requirement (3)
A Balance Sheet Statement cannot be prepared for lack of information Requirement (4)
Closing Entries, December 31, 2008
Raw Materials Inventory, December 31 540,000
Work in Process Inventory, December 31 840,000
Raw Materials Purchase Returns and Allowances 66,000
Finished Goods Inventory, December 31 960,000
Trang 6Exercise 3
Requirement (1)
Crown Manufacturing Co.
Worksheet June 30, 2008
Trial Balance Adjustments Adjusted Trial Balance Cost of Goods Manufactured Income Statement Balance Sheet
Trang 7Trial Balance Adjustments Adjusted Trial Balance Cost of Goods Manufactured Income Statement Balance Sheet
Trang 8Requirement (2)
Crown Manufacturing Co
Statement of Cost of Goods ManufacturedFor the Period Ended June 30, 2008Raw materials used:
Add Net material purchases
Less: Discount on raw material purchases (5,000) 242,200
Less: Raw materials inventory, December 31, 2008 (48,000)
Depreciation expense - machinery 18,000 194,400
Add: Goods in process inventory, January 1, 2008 76,500
Less: Goods in process inventory, December 31, 2008 (56,000)
Trang 9Requirement (3)
Crown Manufacturing Co
Income StatementFor the Period Ended June 30, 2008
Less: Cost of goods sold:
Finished goods inventory, January 1, 2008 P 83,000
Add: Cost of goods manufactured 835,600
Less: Finished goods inventory,
Trang 10Requirement (4)
Crown Manufacturing Co.
Balance Sheet June 30, 2008 ASSETS
Current Assets
Trang 12Date Account Titles and Explanation Post Ref Debit Credit
Trang 13Test Material 14-2
Requirement (1)
Bea Manufacturing Co.
Worksheet For the Year Ended December 31, 2008
Trial Balance Adjustments Adjusted Trial Balance Cost of Goods Manufactured Income Statement Balance Sheet
Trang 1615,253,800 15,253,800 14,225,400 14,225,400
Trang 17Requirement (2)
Bea Manufacturing Co
Statement of Cost of Goods ManufacturedFor the Year Ended December 31, 2008Raw materials used:
Add Net material purchases
Less: Purchase allowances and discount (480,000) 4,460,000
Less: Raw materials inventory, December 31, 2008 (1,900,000)
Factory overhead costs:
Depreciation expense – machinery and equipment 195,000
Add: Goods in process inventory, January 1, 2008 1,395,000
Less: Goods in process inventory, December 31, 2008 (1,200,000)
Trang 18Requirement (3)
Bea Manufacturing Co
Income StatementFor the Year Ended December 31, 2008
Less: Cost of goods sold:
Finished goods inventory, January 1, 2008 P 1,105,000
Add: Cost of goods manufactured 9,987,200
Less: Finished goods inventory,
Miscellaneous selling expenses (200,000)
Depreciation expense – building (120,000)
Depreciation expense – store
furniture and fixtures (36,000) (1,909,600)Administrative expenses
Depreciation expense – office
Depreciation expense – building (120,000)
Trang 19Requirement (4)
Bea Manufacturing Co
Balance SheetDecember 31, 2008ASSETS
Current Assets
Accounts receivable (net of Allowance for bad
Trang 20LIABILITIES AND EQUITY
Issued, 30,000 shares of which 1,000
Total contributed capital and retained earnings P 9,749,100
P 9,509,100
Trang 21Requirement (5)
GENERAL JOURNAL
Date Account Titles and Explanation Post Ref Debit Credit
Dec 31 Cost of Goods Manufactured 9,987,200
Raw Materials Inventory, December
Work in Process Inventory, December
Purchase Allowances and Discount 480,000
Raw Materials Inventory, January
Finished Goods Inventory,
Trang 22Date Account Titles and Explanation Post Ref Debit Credit
Depreciation expense – store
Depreciation expense – office
Depreciation expense – building 120,000