Accounting for Business Operations

Review Final F2022

1. Use the following information for the month of May 2022 to determine the Cost of Goods Manufactured and Cost of Goods Sold for Kacey Manufacturing Company. Assume that over- or under-applied manufacturing overhead is closed to Cost of Goods Sold at the end of the period.

Direct materials inventory, May 1, 2022	$31,500
Direct materials inventory, May 31, 2022	?
Work-in-process inventory, May 1, 2022	6,000
Work-in-process inventory, May 31, 2022	48,000
Finished goods inventory, May 1, 2022	24,000
Finished goods inventory, May 31, 2022	16,500
Direct materials used	30,000
Direct labor used	45,000
Direct materials purchased	97,500
Indirect materials used (supplies)	9,000
Indirect labor used	37,500
Other manufacturing overhead	43,500
Administrative salaries	22,500
Sales salaries and commissions	15,000
Depreciation on sales and office equipment	21,000
Applied manufacturing overhead	97,500

2. The following information is taken from the inventory records of ED Company:

Date	Transaction	Quantity	Unit Cost
October 1	Beginning inventory	18	$4.20
6	Sale	12
14	Purchase	20	$4.50
17	Sale	10
21	Sale	15
24	Purchase	9	$4.70
31	Sale	4

Determine the cost of goods sold for the month using FIFO and LIFO cost flow assumptions. How many units are in ending inventory and what is the cost of ending inventory under each assumption? ED Co. uses a perpetual inventory system.

3.

A. Crete Carrier Corporation reported sales revenue of $1,724,000, accounts receivable of $179,000 at the beginning of the year, and accounts receivable of $201,000 at the end of the year. Cash collections from customers during the year were:

B. Accounts receivable written off during the year totaled $61,500 while the beginning and ending balance of Allowance for Doubtful Accounts were $51,300 and $55,700, respectively. The amount of uncollectible accounts expense for the period was: