COST CLASSIFICATION Instructions for each cost listed below, indicate its cost classification. Label each cost as DIRECT MATERIAL, DIRECT LABOR, FACTORY OVERHEAD or PERIOD COST Tony's T-Shirts manufactures T-Shirts for tourists who visit Seattle. How would you classify each cost below? 1 Cost of cotton fabric that goes into the T-shirts. Choose Cost Classification: 2 Cost of depreciation on the factory sewing machines. Choose Cost Classification: 3 Cost of advertising radio advertising for Tony's T-Shirt Store. Choose Cost Classification: 4 Factory supervisor's salary. Choose Cost Classification: 5 Depreciation on the salesman's car. Choose Cost Classification: 6 Salary cost of security officer who patrols the factory at night. Choose Cost Classification: 7 Cost of paint used to decorate the t-shirts. Choose Cost Classification: 8 Wages of sewing machine operators who construct the t-shirts. Choose Cost Classification: 9 The wages of the high-school student who sweeps the factory. Choose Cost Classification: 10 Depreciation on the company president's limousine. Choose Cost Classification: 11 Property taxes on the factory building. Choose Cost Classification: 12 Depreciation on the factory supervisor's computer. Choose Cost Classification: 13 Cost of electricity used to operate the sewing machines in the factory. Choose Cost Classification: 14 Cost of t-shirt size tag, considered an indirect material. Choose Cost Classification: 15 Cost of heating and lighting in the factory. Choose Cost Classification: When you are done with this sheet, click in cell D1 and change the status to "DONE!" THREE INVENTORIES THIS EXERCISE IS NOT Beginning Balance Purchases of RM Ending Balance RM RAW MATERIALS 4,000 ? 22.000 9.000 Lander Manufacturing had beginning raw materials of $4,000. During the month, Lander made raw material purchases of $22,000. At the end of the month, Lander had raw materials of $9,000 remaining. What amount of raw materials were used during the month? Beginning Balance Direct Materials Used Direct Labor Costs Factory Overhead Costs Ending Balance of WIP WORK IN PROCESS 12.000 17,000 28,000 32.000 15,000 Lander Company's beginning Work in Process Inventory for the month was $12,000. The direct materials brought into the factory amounted to $17,000. The direct labor cost for the month was $28,000 and factory overhead costs were $32,000. The ending balance of Work in Process for the month was $15,000. What was the Cost of Goods Manufactured? Beginning Balance Cost of Goods Manufactured Ending Balance of FG FINISHED GOODS 8.000 ? 74.000 12.000l At the beginning of the month, Lander had a beginning finished goods inventory of $8,000. The Cost of Goods Manufactured for the month was $74,000. At the end of the month, the finished goods inventory was $12,000. What was the cost of goods sold for the month? Sales for the month were $95,000. What amount of gross profit was earned during the month? COST OF GOODS SOLI 70,000 70.000 95,000 95.000 When you are done with this sheet, click in cell K1 and change the status to "DONE" FIVE FORMULAS THIS EXERCISE IS NOT DONE To simplify the COGM statement, think of it as four formulas; the fifth is the calculation of COGS on the income statement. Using the data, calculate the following items on the COGM statement: 1. DIRECT MATERIALS COST 2. TOTAL MFG COST INCURRED 3. TOTAL MANUFACTURING COST = COGM/COGS Data: RAW MATERIALS WORK IN PROCESS FINISHED GOODS 1/1/20 45,000 60,000 70,000 12/31/20 70,000 54,000 44,000 L 4. COST OF GOODS MANUFACTURED - 5. COST OF GOODS SOLD = RAW MATERIALS PURCHASES DIRECT LABOR COST FACTORY OVERHEAD COST 120,000 180.000 170,000 When you are done with this sheet, click in cell H1 and change the status to "DONEI" ASSESS YOUR PROGRESS SO FAR THIS EXERCISE IS NOT DONE ANSWERS 1 How did you do on this quiz? 2 Did you submit all of the homework for chapter 18? 3 Did the homework prepare you adequately for this quiz? 4 How is the AMOUNT homework so far? 5 How many class sessions have you attended so far? 6 How many of the videos have you watched so far? 7 Any other comments or suggestions you have about the class? You can use any of the space on this sheet if you have other comments, thanks for your input. When you are done with this sheet, click in cell Cl and change the status to "DONE