Hayward Company, a manufacturing firm, has supplied the following information from its accounting records for the month of May:

Direct labor cost	$10,500
Purchases of raw materials	15,000
Supplies used	675
Factory insurance	350
Commissions paid	2,500
Factory supervision	2,225
Advertising	800
Material handing	3,750
Materials inventory, May 1	3,475
Work-in-process inventory, May 1	12,500
Finished goods inventory, May 1	6,685
Materials inventory, May 31	9,500
Work-in-process inventory, May 31	14,250
Finished goods inventory, May 31	4,250

	Required:
1.	Prepare a statement of cost of goods manufactured.
2.	Prepare a statement of cost of goods sold.

Refer to the list below for the exact wording of a label or an amount description within your statements.

Labels
Manufacturing overhead
Selling expenses
Amount Descriptions
Cost of goods manufactured
Cost of goods sold
Direct labor
Direct materials used
Factory insurance
Factory supervision
Factory supplies
Finished goods inventory, May 1
Finished goods inventory, May 31
Total manufacturing cost for May
Material handling
Work in process, May 1
Work in process, May 31

1. Prepare a statement of cost of goods manufactured. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your statement. If an amount is negative, enter a minus (-) sign first.

Hayward Company

Statement of Cost of Goods Manufactured

For the Month of May

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2. Prepare a statement of cost of goods sold. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your statement. If an amount is negative, enter a minus (-) sign first.

Hayward Company

Statement of Cost of Goods Sold

For the Month of May

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Cost of Direct Materials, Cost of Goods Manufactured, Cost of Goods Sold

Bisby Company manufactures fishing rods. At the beginning of July, the following information was supplied by its accountant:

Raw materials inventory		$40,000
Work-in-process inventory		21,000
Finished goods inventory		23,200

During July, the direct labor cost was $43,500, raw materials purchases were $64,000, and the total overhead cost was $108,750. The inventories at the end of July were:

Raw materials inventory		$19,800
Work-in-process inventory		32,500
Finished goods inventory		22,100

Required:

1. What is the cost of the direct materials used in production during July? $

2. What is the cost of goods manufactured for July? $

3. What is the cost of goods sold for July? $

&&

Berry Company is an architectural firm located in Detroit, Michigan. The company works with small and medium-size construction businesses to prepare building plans according to the client's contract. The following data are provided for the previous year:

Number of designs completed and sold	700 designs
Beginning inventory of direct materials	$20,000
Beginning inventory of designs in process	60,000
Ending inventory of direct materials	10,000
Ending inventory of designs in process	100,000
Purchases, direct materials	40,000
Direct labor	800,000
Manufacturing overhead	100,000
Administrative expense	150,000
Selling expense	60,000
Beginning inventory of finished designs	300,000
Ending inventory of finished designs	280,000

	Required:
1.	Calculate the cost of goods manufactured.
2.	Calculate the cost of goods sold.
3.	Assume that the average fee for a design is $2,100. Prepare an income statement for Berry.
4.	CONCEPTUAL CONNECTION: Refer to the cost of goods sold (calculated in Requirement 2). What is the dominant cost? Briefly explain why this cost is the dominant one for Berry.

Refer to the list below for the exact wording of a label or an amount description within your income statement.

Labels
Add
Less
Amount Descriptions
Cost of goods sold
Gross margin
Selling expense
Administrative expense
Operating income
Operating loss
Sales

Calculate the cost of goods manufactured.

Berrys cost of goods manufactured for last year was .

2. Calculate the cost of goods sold.

Berrys cost of goods sold for last year was .

3. Assume that the average fee for a design is $2,100. Prepare an income statement for Berry. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement.

Berry Company

Income Statement

For Last Year

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