PROBLEM 1 Instructions Prepare an income statement, retained earnings statement, and a classified balance sheet. The following costs and inventory data were taken from the accounts of Simon Company for 2017: January 1, 2017 December 31, 2017 Inventories: Raw materials $ 8,000 $ 7,000 Work in process 15,000 13,000 Finished goods 16,000 12,000 Costs incurred: Raw materials purchases $93,000 Direct labor 42,000 Factory rent 8,000 Factory utilities 10,000 Indirect materials 4,000 Indirect labor 9,000 Operating expenses 17,000 Instructions a. Prepare a schedule showing the amount of direct materials used in production during the year. b. Compute the amount of manufacturing overhead incurred during the year. c. Prepare a schedule of Cost of Goods Manufactured for Simon Company for the year ended December 31, 2017 in good form. d. Prepare the Cost of Goods Sold section of the Income Statement for Simon Company for the year ended December 31, 2017 in good form. Page 2 ACCT 1162 PROBLEM 2 Manufacturing cost data for Morton Company are presented below. Case A Case B Case C Direct materials used (a) $65,400 $130,000 Direct labor $ 57,000 76,000 (g) Manufacturing overhead 46,500 81,600 102,000 Total manufacturing costs 185,650(d) 263,700 Work-in-process, 1/1/13 (b) 16,500 (h) Total cost of work-in-process 221,500(e) 327,000 Work-in-process, 12/31/13 (c) 9,000 80,000 Cost of goods manufactured 180,275(1) (i) Instructions Indicate the missing amount for each letter (a) through (i). Page 3 ACCT 1162 PROBLEM 3 Glavine Corporation incurred the following costs while manufacturing its product. Materials used in product $ 120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 19,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Salaries paid to sales clerks 50,000 Work-in-process inventory was $22,000 at January 1 and $15,500 at December 31. Finished goods inventory was $65,000 at January 1 and $50,600 at December 31. Instructions (a) Compute cost of goods manufactured. (b) Compute cost of goods sold
