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Accounting 311 Manufacturing Worksheet - Chunky Milk Balance Sheet Income Statement Assumptions: Raw Materials Inventory Sales Raw milk costs $2/gallon WIP Inventory Less COGS one
Accounting 311 Manufacturing Worksheet - Chunky Milk Balance Sheet Income Statement Assumptions: Raw Materials Inventory Sales Raw milk costs $2/gallon WIP Inventory Less COGS one batch = 100 gallons Finished Goods Inventory Gross Profit Chunking one batch of milk requires 5 hours of direct labor Total Inventory Gross Margin Milk chunkers are paid $15/hour FOH is applied at a rate of 120% of direct labor dollars Direct labor is added at the beginning of the conversion process FOH is appled at the end of the conversion process We sell our chunky milk for $5/gallon Period 3 We purchase 1500 gallons of milk Raw Materials Ending Inventory is 0 WIP ending inventory is 1 batch Finished Goods ending inventory is 3 batches Schedule of Raw Materials Work in Process (WIP) Schedule of Cost of Goods Sold Period 3 Batches Dollars Batches Dollars Batches Dollars Beginning Inventory Beginning Inventory Beginning Inventory +Purchases + Direct Materials Used +Cost of Goods Manufactured =Raw materials available for use +Direct Labor =Cost of Goods Available for Sale -Ending Inventory +FOH -Ending Inventory =Direct Materials Used (Transferred to WIP) =Total Manufacturing Costs =Cost of Goods Sold -Ending Inventory =Total Costs of Goods Manufactured (Transferred to Finished Goods)
| Accounting 311 | ||||||||
| Manufacturing Worksheet - Chunky Milk | Balance Sheet | Income Statement | ||||||
| Assumptions: | Raw Materials Inventory | Sales | ||||||
| Raw milk costs $2/gallon | WIP Inventory | Less COGS | ||||||
| one batch = 100 gallons | Finished Goods Inventory | Gross Profit | ||||||
| Chunking one batch of milk requires 5 hours of direct labor | Total Inventory | Gross Margin | ||||||
| Milk chunkers are paid $15/hour | ||||||||
| FOH is applied at a rate of 120% of direct labor dollars | ||||||||
| Direct labor is added at the beginning of the conversion process | ||||||||
| FOH is appled at the end of the conversion process | ||||||||
| We sell our chunky milk for $5/gallon | ||||||||
| Period 3 | ||||||||
| We purchase 1500 gallons of milk | ||||||||
| Raw Materials Ending Inventory is 0 | ||||||||
| WIP ending inventory is 1 batch | ||||||||
| Finished Goods ending inventory is 3 batches | ||||||||
| Schedule of Raw Materials | Work in Process (WIP) | Schedule of Cost of Goods Sold | ||||||
| Period 3 | Batches | Dollars | Batches | Dollars | Batches | Dollars | ||
| Beginning Inventory | Beginning Inventory | Beginning Inventory | ||||||
| +Purchases | + Direct Materials Used | +Cost of Goods Manufactured | ||||||
| =Raw materials available for use | +Direct Labor | =Cost of Goods Available for Sale | ||||||
| -Ending Inventory | +FOH | -Ending Inventory | ||||||
| =Direct Materials Used (Transferred to WIP) | =Total Manufacturing Costs | =Cost of Goods Sold | ||||||
| -Ending Inventory | ||||||||
| =Total Costs of Goods Manufactured (Transferred to Finished Goods) |
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Horngrens Financial And Managerial Accounting
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura
6th Edition
0134486838, 978-0134486833
