Problem 1:
The following events took place for Video Wave Manufacturing Company during January 2016, the first month of its operations as a producer of digital video monitors:
a. Purchased $133,200 of materials.
b. Used $94,080 of direct materials in production.
c. Incurred $180,320 of direct labor wages.
d. Incurred $211,680 of factory overhead.
e. Transferred $425,320 of work in process to finished goods.
f. Sold goods with a cost of $365,000.
g. Earned revenues of $652,000.
h. Incurred $86,520 of selling expense.
i. Incurred $71,250 of administrative expense.
Required:
Using the information given, complete the following:
A. Prepare the January 2016 income statement for Video Wave Manufacturing Company. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
B. Determine the inventory balances at the end of the first month of operations.
Problem 2:
The following information is available for Ethtridge Manufacturing Company for the month ending January 31, 2016:
|
Cost of direct materials used in production
|
$390,000
|
|
Direct labor
|
336,000
|
|
Work in process inventory, January 1
|
162,000
|
|
Work in process inventory, January 31
|
170,400
|
|
Total factory overhead
|
234,000
|
Determine Ethtridge's cost of goods manufactured for the month ended January 31, 2016.
Problem 3:
Cost data for Mix-A-Lot Manufacturing Company for the month ended March 31, 2016, are as follows:
|
Inventories
|
March 1
|
March 31
|
|
Materials
|
$315,000
|
$277,200
|
|
Work in process
|
214,200
|
239,400
|
|
Finished goods
|
163,800
|
189,000
|
|
|
March 31
|
|
Direct labor
|
$567,000
|
|
Materials purchased during May
|
604,800
|
|
Factory overhead incurred during May:
|
|
|
Indirect labor
|
60,480
|
|
Machinery depreciation
|
36,000
|
|
Heat, light, and power
|
12,600
|
|
Supplies
|
10,080
|
|
Property taxes
|
8,820
|
|
Miscellaneous costs
|
16,380
|
Required:
A. Prepare a cost of goods manufactured statement for March 2016. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Less" or "Plus" will automatically appear if it is required. Enter all amounts as positive numbers.
B. Determine the cost of goods sold for March 2016.
Problem 4:
The following information is available for The NewQuest Corporation for 2016:
|
Inventories
|
January 1
|
December 31
|
|
Materials
|
$351,000
|
$436,800
|
|
Work in process
|
631,800
|
592,800
|
|
Finished goods
|
608,400
|
576,000
|
|
December 31
|
|
Advertising expense
|
$ 296,400
|
|
Depreciation expense-office equipment
|
42,120
|
|
Depreciation expense-factory equipment
|
56,160
|
|
Direct labor
|
670,800
|
|
Heat, light, and power-factory
|
22,460
|
|
Indirect labor
|
78,750
|
|
Materials purchased
|
659,800
|
|
Office salaries expense
|
185,000
|
|
Property taxes-factory
|
18,500
|
|
Property taxes-office building
|
32,400
|
|
Rent expense-factory
|
32,000
|
|
Sales
|
3,010,000
|
|
Sales salaries expense
|
420,000
|
|
Supplies-factory
|
15,400
|
|
Miscellaneous costs-factory
|
9,500
|
Required:
A. Prepare the 2016 statement of cost of goods manufactured.*
B. Prepare the 2016 income statement.*
* Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Less" or "Plus" will automatically appear if it is required. Enter all amounts as positive numbers.