Problem #1

Cost of Goods Sold, Cost of Goods Manufactured

Timbuk 3 Company has the following information for March:

Cost of direct materials used in production $48,000

Direct labor 54,000

Factory overhead 34,000

Work in process inventory, March 1 34,000

Work in process inventory, March 31 45,900

Finished goods inventory, March 1 29,000

Finished goods inventory, March 31 20,000

a. For March, determine the cost of goods manufactured.

Using the data given, I must prepare a statement of Cost of Goods Manufactured.

Timbuk 3 Company

Statement of Cost of Goods Manufactured

Total manufacturing costs incurred during March

Total manufacturing costs

Cost of goods manufactured

b. For March, determine the cost of goods sold.

Using the data given, I must prepare a statement of Cost of Goods Sold.

Timbuk 3 Company

Statement of Cost of Goods Sold

Cost of goods sold

Cost of Goods Sold, Cost of Goods Manufactured

Glenville Company has the following information for April:

Cost of direct materials used in production $280,000

Direct labor 324,000

Factory overhead 188,900

Work in process inventory, April 1 72,300

Work in process inventory, April 30 76,800

Finished goods inventory, April 1 39,600

Finished goods inventory, April 30 41,200

Problem #2

a. For April, determine the cost of goods manufactured.

Using the data given, I must prepare a statement of Cost of Goods Manufactured.

Glenville Company

Statement of Cost of Goods Manufactured

Total manufacturing costs incurred during April

Total manufacturing costs

Cost of goods manufactured

b. For April, determine the cost of goods sold.

Using the data given, I must prepare a statement of Cost of Goods Sold.

Glenville Company

Statement of Cost of Goods Sold

Cost of goods sold

Problem #3

Concepts and Terminology

From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:

Sentence Appropriate term for completing sentence

a.The phase of the management process that uses process information to eliminate the source of problems in a process so that the process delivers the correct product in the correct quantities is called (directing, improving).

b.Direct labor costs combined with factory overhead costs are called (prime, conversion) costs.

c.The salaries of sales people are normally considered a (period, product) cost.

d.The plant manager's salary would be considered (direct, indirect) to the product.

e.Long-term plans are called (strategic, operational) plans.

f.Materials for use in production are called (supplies, materials inventory).

g.An example of factory overhead is (electricity used to run assembly line, CEO salary).

The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc.

Marching Ants Inc.

Manufacturing Costs

For the Quarter Ended June 30

1 Materials used in production (including $56,200 of indirect materials)$607,500.00

2 Direct labor (including $84,400 maintenance salaries)562,500.00

3 Factory overhead:

4 Supervisor salaries517,500.00

5 Heat, light, and power140,650.00

6 Sales salaries348,750.00

7 Promotional expenses315,000.00

8 Insurance and property taxesplant151,900.00

9 Insurance and property taxescorporate offices219,400.00

10 Depreciationplant and equipment123,750.00

11 Depreciationcorporate offices90,000.00

12 Total$3,076,950.00

Evaluate and correct this report. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Evaluate and correct this report. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Marching Ants Inc.

Manufacturing Costs

1

2

3 Factory overhead:

4

5

6

7

8

9

10

Labels & Amount Descriptions

Labels

For the Month Ended June 30

For the Quarter Ended June 30

For the Year Ended June 30

Amount Descriptions

Cost of direct materials used in production

Depreciation-corporate offices

Depreciation-plant and equipment

Direct labor

Heat, light, and power

Indirect materials

Insurance and property taxes-corporate offices

Insurance and property taxes-plant

Maintenance salaries

Materials used in production (including indirect materials)

Promotional expenses

Sales salaries

Supervisor salaries

Total manufacturing costs incurred