Indirect Materials	6,400		CEO's salary	12,000
Depreciation on delivery equipment	11,200		Drivers' salaries	16,000
Repairs on office equipment	180		Advertising	4,600
Property taxes on office building	870		Office supplies	650
Gas and oil for delivery trucks	2,200		Office utilities	990
Delivery equipment repairs	300		Dispatcher's salary	5,000

Instructions

(a) Compute cost of goods manufactured.

(b) Compute cost of goods sold.

(a) LOPEZ COMPANY Cost of Goods Manufactured Schedule For the Year Ended December 31, 2017
Work in process, Jan 1			12,000
Direct Materials Used
Direct Labor
Manufacturing (Factory) Overhead:
Depreciation on plant
Factory supplies used
Property taxes on plant
Total (Factory) Overhead (total the 3 costs in column one)
Total Manufacturing Costs (total the three items in middle column)
Total Cost of Work-In-Process
Less: Ending Work-In-Process	FYI: Given in the problem Ending is the year end amount (DEC 31)
Cost of Goods Manufactured			323,500

Instructors Note: FYI: check the 323,500 to make sure your amounts add up (I will). If they are not right Ill hit you for -3 points (I know - what an sob).

Also as a tip for any job you have NEVER give the boss incorrect numbers or figures that do not add up or total correctly it significantly undermines your professionalism and credibility (I made that mistake once.)

(b)

(items to calculate CGS (cost of goods sold) (do not add ALL of them together).

Finished goods
Cost of goods manufactured
Cost of goods available for sale (add the 2 items above this for the total)
Finished goods
Cost of goods sold

P1-1B(Only problems ending in A are in your book; B prob are only below)

Agler Company specializes in manufacturing motorcycle helmets. The company has enough orders to keep the factory production at 1,000 motorcycle helmets per month. Aglers monthly factory cost and other expense data are shown below:

Instructor Note: Factory Costs, Manufacturing Costs (Mfg) and Production Costs are synonyms. In this course the terms are used inter-changeably.

Instructions:

(a) Classify each item listed in col 1 into one of the four categories on the right by placing the amount from col 2 into ONE of the 4 columns on the right. Total each of the four right columns. (The 1st item Maintenance costs on is an example and yes it should be included in the Factory Overhead column total).

(b) compute the Total production costs

(c) computer the cost of ONE motorcycle helmet

(a) Product Costs

Col 1 Cost Description	Col 2 Amount		Direct Materials	Direct Labor	Factory Overhead	Period Costs
Maintenance costs on factory Building	1,500				1,500
Depreciation on office equipment	500
Raw materials (plastic, polystyrene, etc.)	25,000
Miscellaneous materials (glue, thread, etc.)	2,000
Wages for assembly line workers	54,000
Supplies for sales office	200
Factory managers salary	5,500
Advertising for helmets	8,000
Sales commissions	4,000
Depreciation on factory building	700
Rent on factory equipment	6,000
Insurance on factory building 3,000	3,000
Utility costs for factory	800
Column Totals

(b) Total Production Costs
Total Production Cost

(c) Production Cost for ONE Helmet