1. Cost of Goods Sold, Cost of Goods Manufactured

Clementine Company has the following information for July:

Cost of direct materials used in production	$	34,000
Direct labor		41,000
Factory overhead		28,000
Work in process inventory, July 1		26,000
Work in process inventory, July 31		35,000
Finished goods inventory, July 1		25,000
Finished goods inventory, July 31		20,000

a. For July, determine the cost of goods manufactured. $

b. For July, determine the cost of goods sold. $

2. Income Statement for a Manufacturing Company

Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement. Determine the amounts of the missing items, identifying them by letter.

Finished goods inventory, November 1	$72,800		$20,400		(e)
Cost of goods manufactured	364,000		(c)		71,400
Cost of finished goods available for sale	(a)		$193,800		$112,200
Finished goods inventory, November 30	84,700		40,700		(f)
Cost of goods sold	(b)		(d)		$103,200

a.	$
b.	$
c.	$
d.	$
e.	$
f.	$

3.The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc.

Marching Ants Inc.

Manufacturing Costs

For the Quarter Ended June 30, 2016

1	Materials used in production (including $53,000 of indirect materials)	$600,000.00
2	Direct labor (including $84,000 maintenance salaries)	569,000.00
3	Factory overhead:
4	Supervisor salaries	521,000.00
5	Heat, light, and power	140,400.00
6	Sales salaries	346,900.00
7	Promotional expenses	310,000.00
8	Insurance and property taxesplant	151,900.00
9	Insurance and property taxescorporate offices	218,200.00
10	Depreciationplant and equipment	124,250.00
11	Depreciationcorporate offices	87,000.00
12	Total	$3,068,650.00

Evaluate and correct this report. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Marching Ants Inc.

Manufacturing Costs

For the Quarter Ended June 30, 2016

1
2
3	Factory overhead:
4
5
6
7
8
9
10

4.Cost of Goods Manufactured for a Manufacturing Company

Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter.

Work in process inventory, December 1	$4,400		$36,100		(e)
Total manufacturing costs incurred during December	32,600		(c)		211,800
Total manufacturing costs	(a)		$422,400		$229,900
Work in process inventory, December 31	7,000		88,700		(f)
Cost of goods manufactured	(b)		(d)		$193,100

a.	$
b.	$
c.	$
d.	$
e.	$
f.	$

5.Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company

The following information is available for Gonzalez Manufacturing Company for the month ending July 31, 2016:

Cost of goods manufactured	$168,200
Selling expenses	56,190
Administrative expenses	29,700
Sales	357,880
Finished goods inventory, July 1	40,440
Finished goods inventory, July 31	36,860

For the month ended July 31, 2016, determine Gonzalez's (a) cost of goods sold, (b) gross profit, and (c) net income.

(a)

Gonzalez Manufacturing Company
Cost of Goods Sold
July 31, 2016
	$
	$
	$

(b)

Gonzalez Manufacturing Company
Gross Profit
July 31, 2016
	$
	$

(c)

Gonzalez Manufacturing Company
Net Income
July 31, 2016
		$
Operating expenses:
	$
Total operating expenses
		$

6.Cost data for Mix-A-Lot Manufacturing Company for the month ended March 31, 2016, are as follows:

Inventories	March 1	March 31
Materials	$310,000	$276,600
Work in process	215,200	238,400
Finished goods	162,800	190,100

	March 31
Direct labor	$565,000
Materials purchased during the month	604,800
Factory overhead incurred during the month:
Indirect labor	60,440
Machinery depreciation	35,000
Heat, light, and power	13,600
Supplies	8,540
Property taxes	8,860
Miscellaneous costs	16,400

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.

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.

Mix-A-Lot Manufacturing Company

Statement of Cost of Goods Manufactured

For the Month Ended March 31, 2016

1
2	Direct materials:
3
4
5	Cost of materials available for use
6
7	Cost of direct materials used
8
9	Factory overhead:
10
11
12
13
14
15
16	Total factory overhead
17	Total manufacturing costs incurred
18	Total manufacturing costs
19
20	Cost of goods manufactured

Determine the cost of goods sold for March 2016.: $___________________

7.Partial balance sheet data for Flat Top Company at December 31, 2016, are as follows:

Finished goods inventory	$43,250
Prepaid insurance	26,500
Accounts receivable	104,000
Work in process inventory	155,500
Supplies	70,600
Materials inventory	88,750
Cash	112,000

Prepare the Current Assets section of Flat Top Companys balance sheet at December 31, 2016. Refer to the Labels and Accounts list provided for the exact wording of the answer choices for text entries.

Prepare the Current Assets section of Flat Top Companys balance sheet at December 31, 2016. Refer to the Labels and Accounts list provided for the exact wording of the answer choices for text entries.

Flat Top Company

Balance Sheet

December 31, 2016

1
2
3
4
5
6
7
8
9
10	Total current assets

8.Cost of Goods Manufactured for a Manufacturing Company

The following information is available for O'Neal Manufacturing Company for the month ending January 31, 2016:

Cost of direct materials used in production	$157,900
Direct labor	189,500
Work in process inventory, January 1	71,100
Work in process inventory, January 31	96,300
Total factory overhead	86,800

Determine O'Neal's cost of goods manufactured for the month ended January 31, 2016.

O'Neal Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31, 2016
		$
Add manufacturing costs incurred during January:
	$
Total manufacturing costs incurred
Total manufacturing costs		$
Cost of goods manufactured		$

9.Cost Flow Relationships

The following information is available for the first month of operations of Zahorik Company, a manufacturer of mechanical pencils:

Sales	$469,420
Gross profit	273,670
Cost of goods manufactured	234,710
Indirect labor	101,860
Factory depreciation	15,490
Materials purchased	144,580
Total manufacturing costs for the period	269,920
Materials inventory, ending	19,250

Using the above information, determine the following missing amounts:

a. Cost of goods sold	$
b. Finished goods inventory at the end of the month	$
c. Direct materials cost	$
d. Direct labor cost	$
e. Work in process inventory at the end of the month	$

10.Cost of Direct Materials Used in Production for a Manufacturing Company

Monterey Manufacturing Company reported the following materials data for the month ending April 30, 2016:

Materials purchased	$157,700
Materials inventory, April 1	49,800
Materials inventory, April 30	41,500

Determine the cost of direct materials used in production by Monterey during the month ended April 30, 2016

$

11.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 $133,400 of materials.
	b. Used $94,980 of direct materials in production.
	c. Incurred $180,320 of direct labor wages.
	d. Incurred $215,440 of factory overhead.
	e. Transferred $425,880 of work in process to finished goods.
	f. Sold goods with a cost of $368,750.
	g. Earned revenues of $645,000.
	h. Incurred $85,120 of selling expense.
	i. Incurred $71,400 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.

Using the information given, 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.

Video Wave Manufacturing Company

Income Statement

For the Month Ended January 31, 2016

1
2
3
4	Operating expenses:
5
6
7	Total operating expenses
8

Using the information given, determine the inventory balances at the end of the first month of operations.

	Materials
	Work in process
	Finished goods