Problem 2-9

You have the following information about the activities of ABC Inc. for 2016

Sales

Factory maintenance

Indirect labour

Direct Material purchases

Factory utilities

Ending Direct materials

General and Administrative expense Beginning work-in-process inventory Beginning finished goods inventory Ending work-in-process inventory Ending finished goods inventory Beginning direct material inventory Selling Expenses

Direct labour

Factory insurance

Indirect Materials Amortization-Factory

Required:

1. What was the ending direct material inventory? 2. What was the total manufacturing cost?

3. What was the cost of goods manufactured?

4. What was the cost of goods sold?

500,000 24,000 19,000 98,000 17,000 16,000 71,200 26,000 63,000 34,000 44,600 13,000 67,600 83,000

9,000

7,600 30,000

income for 2016.

5. Based on all the answers above, please calculate the net

Cost Indentification

Mr. John Black began his pottery manufacturing business serveral years ago.

The following costs occurred during 2016, please use the cost classification method to put them in to proper cost group

1) As the business owner, John's saary $5000 per month 2) Workshop Building rent, $2800 per month

3) Clay and glaze $2 per pottery

4)Wages of production worker, $12/pottery

5) Advertising, $800 per month

6) Sales commission, $10 / pottery

7) Rent of production equipment, $300 /month 8) Amortization of office copier machine $500 9) Rent of sales office $500 per month

10) Phone for taking orders $40 per month

11) Interest lost on savings account, $1200 per year

to put them in to proper cost group

d

Problem 2-9 You have the following information about the activities of ABC Inc. for 2016 Sales 500,000 Factory maintenance 24,000 Indirect labour 19,000 Direct Material purchases 98,000 Factory utilities 17,000 Ending Direct materials 16,000 General and Administrative expense 71,200 Beginning work-in-process inventory 26,000 Beginning finished goods inventory 63,000 Ending work-in-process inventory 34,000 Ending finished goods inventory 44,600 Beginning direct material inventory 13,000 Selling Expenses 67,600 Direct labour 83,000 Factory insurance 9,000 Indirect Materials 7,600 Amortization-Factory 30,000 Required: 1. What was the ending direct material inventory? 2. What was the total manufacturing cost? 3. What was the cost of goods manufactured? 4. What was the cost of goods sold? 5. Based on all the answers above, please calculate the net income for 2016. Cost Indentification Mr. John Black began his pottery manufacturing business serveral years ago. The following costs occurred during 2016, please use the cost classification method to put them in to p 1) As the business owner, John's saary $5000 per month 2) Workshop Building rent, $2800 per month 3) Clay and glaze $2 per pottery 4)Wages of production worker, $12/pottery 5) Advertising, $800 per month 6) Sales commission, $10 / pottery 7) Rent of production equipment, $300 /month 8) Amortization of office copier machine $500 9) Rent of sales office $500 per month 10) Phone for taking orders $40 per month 11) Interest lost on savings account, $1200 per year