QUESTION #1
Among the items that Gentry Print Shop accounts for are the following:
1. Direct labor _________
2. Office supplies used _________
3. Depreciation on printing machines _________
4. Finished goods inventory, 12/31 _________
5. Raw materials inventory, 1/1 _________
6. Cost of goods manufactured _________
7. Work in process, 1/1 _________
8. Office supplies inventory, 12/31 _________
9. Indirect labor _________
10. Heat and electricity for the print shop _________
Gentry Print Shop prepares the following schedule and financial statements on a yearly basis:
(a) Cost of goods manufactured schedule.
(b) Income statement.
(c) Balance sheet.
Instructions
For each item, indicate by using the appropriate letter(s) the schedule and/or financial statements in which the item will appear.
QUESTION #2
From the account balances listed below, prepare a schedule of cost of goods manufactured for Timmons Manufacturing Company for the month ended December 31, 2008.
Account Balances
Finished Goods Inventory, December 31 $42,000
Factory Supervisory Salaries 12,000
Income Tax Expense 18,000
Raw Materials Inventory, December 1 12,000
Work In Process Inventory, December 31 25,000
Sales Salaries Expense 14,000
Factory Depreciation Expense 8,000
Finished Goods Inventory, December 1 35,000
Raw Materials Purchases 95,000
Work In Process Inventory, December 1 30,000
Factory Utilities Expense 4,000
Direct Labor 70,000
Raw Materials Inventory, December 31 19,000
Sales Returns and Allowances 5,000
Indirect Labor 21,000