Prepare a schedule of cost of goods manufactured

Question

Assignment

Objective

• To understand and solidify introductory financial accounting course concepts and techniques

• Description

• Managerial Accounting focuses heavily on finding solutions to numerical problems. With that in mind, most units will include a number of problems. For each problem, you will need to provide more than a simple numerical response. Your solutions should thoroughly address the issue and present the findings in a meaningful format similar to those developed within the chapters and as part of the review exercises solutions. Part value may be assigned for incorrect responses.

Question 1:

• The following information was taken from the accounting records of Dunbar Mifflin Company in 2018.

	Beginning of 2018	Ending of 2018
Direct materials inventory	135,000	83,000
Work-in-process inventory	185,000	154,000
Finished-goods inventory	255,000	216,000
Purchases of direct materials		270,000
Direct manufacturing labor		225,000
Indirect manufacturing labor		103,000
Plant insurance		11,000
Depreciation-plant, building, and equipment		48,000
Plant utilities		29,500
Repairs and maintenance-plant		13,500
Equipment leasing costs		66,800
Marketing, distribution, and customer-service costs		129,500
General and administrative costs		72,500

Required:

1) Prepare a schedule of cost of goods manufactured.

Question 2:

• Following are the account balances for the DC Company in 2018:

	Beginning of 2018	Ending of 2018
Direct materials inventory	26,500	27,000
Work-in-process inventory	30,500	28,400
Finished-goods inventory	16,500	22,100
Purchases of direct materials		79,000
Direct manufacturing labor		24,500
Indirect manufacturing labor		18,600
Plant insurance		7,900
Depreciation-plant, building, and equipment		11,800
Repairs and maintenance-plant		3,500
Marketing, distribution, and customer-service costs		87,900
General and administrative costs		26,500

Required:

1) Prepare a schedule for the cost of goods manufactured for 2018.
2) Revenues for 2018 was $425,000. Prepare the income statement for 2018.

Question 3:

• Identify if the following costs are "product" or "period" costs:

COST	Period Cost or Product Cost?
1. Television advertisements for Bailey's products
2. Lubricants used in running bottling machines
3. Research and Development related to elimination of antibiotic residues in milk
4. Gasoline used to operate refrigerated trucks delivering finished dairy products to grocery stores
5. Company president's annual bonus
6. Depreciation on refrigerated trucks used to collect raw milk
7. Plastic gallon containers in which milk is packaged
8. Property insurance on dairy processing plant
9. Cost of milk purchased from local dairy farmers
10. Depreciation on tablets used by sales staff
11. Depreciation on chairs and tables in the factory lunchroom.
12. The cost of packaging the company's product.
13. The wages of the receptionist in the administrative offices.
14. Cost of leasing the corporate jet used by the company's executives.
15. The cost of renting rooms at a BC resort for the annual conference.

Question 4:

The Trump International Hotel & Tower is a five-star hotel located in downtown Toronto. The hotel's operations vice president would like to replace the hotel's legacy computer terminals at the registration desk with attractive state-of-the-art flat-panel displays. The new displays would take less space, consume less power than the old computer terminals, and provide additional security, since they can be viewed only from a restrictive angle. The new computer displays would not require any new wiring. However, the hotel's chef believes the funds would be better spent on a new bulk freezer for the kitchen.

Required:

1) Classify each item as a differential cost, an opportunity cost, or a sunk cost in the decision to replace the old computer terminals with new flat-panel displays. If none of the categories apply for a particular item, select "None".

Item	Differential Cost	Opportunity Cost	Sunk Cost	None
Cost of the old computer terminals
Rent on the space occupied by the registration desk
Benefits from a new freezer
Cost of removing the old computer terminals
Cost of the new flat-panel displays
Wages of registration desk personnel
Cost of existing registration desk wiring

Format your assignment according to the following formatting requirements:

1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.

2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.