Accounting

EXERCISE 1 The flow of manufacturing costs through the ledger of Wolfe Mfg.Co. during the month of October is summarized in the following T accounts. Certain amounts have been omitted and are represented by question marks. Materials Inventory Beg Bal 42,000 44,000 49,000 End Bal. 47,000 Direct Labor Beg Bal 0 29,000 32,000 End. Bal _? Manufacturing Overhead 44,000 44,000 Work in Process Inventory Beg Bal. 10,000 ? End Bal 14,000 Finished Goods Inventory Beg Bal92,000 ? 131,000 End. Bal 77,000 Cost of Goods Sold 131,000 Instructions: (1) From the data supplied above, determine each of the following amounts. Some of the required amounts already appear in the Taccounts; others require a short computation. (3 points per each of a, b, c, d, e) (a) The amount of direct materials used during the month: (b) The amount paid to direct labor workers during the month: (c) The amount of accrued wages payable to direct labor workers at October 31: (d) Total manufacturing costs charged (debited) to the Work in Process Inventory account during the month: (e) The cost of finished goods manufactured during the month: (2) Using the information given and your answers to part (1), prepare Schedule of Cost of Finished Goods Manufactured. (10 points) (3) Distinguish between management and financial accounting information in terms of (a) the intended users of the information, and (b) the purpose of the information. (5 points)