misc. selling and administrative costs should be 17,000 not 170,000

Beginning estimates: Manufacturing overhead cost Direct material dollars $ 248,000 $ 155,000 $ 142,000 $ 150,000 $ 21,000 $ $ 216,000 90,000 145,000 Transactions: Raw materials purchased Raw materials requisitioned Utility bills Costs for salaries and wages: Direct labor Indirect labor Selling and admin salaries 7 8 Maintenance costs 9 Advertising costs 20 Depreciation 21 For factory assets 22 For sales and administrative assets 23 Rental costs 24 Space for factory 25 Space for sales & administration 26 Misc. selling and administrative costs 27 Manufacturing overhead applied to jobs 28 Cost of goods manufactured 29 Sales on account 30 Cost of goods sold 31 004 $ $ 15,000 130,000 50,000 90% 10% 90,000 80% 20% 170,000 ? 590,000 1,000,000 600,000 $ $ S $ $ $ 50,000 90% 10% 90,000 80% 20% 170,000 ? 590,000 1,000,000 600,000 $ Depreciation For factory assets For sales and administrative assets Rental costs Space for factory Space for sales & administration 5 Misc. selling and administrative costs 7 Manufacturing overhead applied to jobs 8 Cost of goods manufactured -9 Sales on account 30 Cost of goods sold 31 32 Inventory balances: 33 Raw materials 34 Work in process 35 Finished goods 36 37 Job 218 38 Direct Materials 39 Direct labor hours 40 Direct labor rate per hour 41 Units consumed 42 % billed above cost 43 $ $ $ $ $ 18,000 24,000 35,000 $ $ 3,600 400 11 500 75% 7 8 SOUTHWORTH COMPANY Schedule of Cost of Goods Manufactured $ 9 Direct materials: 10 Raw materials inventory, beginning 155,000 11 Add: Purchases of raw materials 142,000 12 Materials available for use (cell formula) 297,000 13 Deduct: Raw materials inventory, ending 18,000 14 Materials used in production 15 Direct labor 16 Mfg. overhead applied to work in process 17 Total manufacturing costs 18 Add: Work in process, beginning 19 20 Deduct: Work in process, ending 21 Cost of goods manufactured 22 23 24 4. 25 SOUTHWORTH COMPANY 26 Schedule of Cost of Goods Sold 27 28 Finished goods inventory, beginning $ 29 Add: Cost of goods manufactured 155,000 30 Goods available for sale 590,000 31 Deduct: Finished goods inventory, ending 745,000 32 Unadjusted Cost of goods sold 35,000 710,000 SPO3-25 + 279,000 216,000 100,000 595,000 19,000 614,000 24,000 590,000 Correct! Given P03-25 Really D F G H 29 Add: Cost of goods manufactured 590,000 30 Goods available for sale 745,000 31 Deduct: Finished goods inventory, ending 35,000 32 Unadjusted Cost of goods sold 710,000 33 Add: underapplied overhead 148,000 34 Adjusted cost of goods sold 858,000 35 Try again! 36 37 5. 38 SOUTHWORTH COMPANY 39 Income Statement 40 41 Sales 42 Cost of goods sold 43 Gross margin 44 Selling and administrative expenses: 45 Salaries expense 451,000 46 Advertising expense 130,000 47 Depreciation expense 48 Rent expense 50,000 49 Miscellaneous expense 90,000 50 Net operating income 17,000 51 $ 52 53 6. 54 10,000 6,000 4,000 (891,000) (491,000) Try again! $ 6. SOUTHWORTH COMPANY Price per Unit 5. 7 Direct materials 3,600 B Direct labor 4,400 9 Manufacturing overhead cost applied 7,040 0 Total manufacturing cost 15,040 31 Add markup 11,280 52 Total billed price of job 218 $ 26,320 53 Try again! 34 65 Price per unit $ 52.64 66 Try again! 67