Question 1

An analysis of the accounts of Bonita Company reveals the following manufacturing cost data for the month ended September 30, 2020. Inventories glg Ending Raw materials $12,600 $11,900 Work in process 8,100 5,600 Finished goods 10,600 12,600 Costs incurred: raw materials purchases $63,100, direct labor $51,600, manufacturing overhead $29,250. The specic overhead costs were: indirect labor $7,100, factory insurance $5,600, machinery depreciation $6,600, machinery repairs $3,400, factory utilities $4,200, miscellaneous factory costs $2,350. Assume that all raw materials used were direct materials. Bonita Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in several changes in Bonita' cost structure. Both direct labor and indirect labor would decrease by 40%. Factory insurance would increase to $8,600, machinery depreciation would double, machinery repairs would decrease to $560, utilities would decrease to $3,100 and miscellaneous factory costs would increase to $2,450. Materials usage would remain at current levels. Analyze the new purchase by preparing a cost of goods manufactured schedule for September 30, 2020 using the new data. Bonita Co. Cost of Goods Manufacturing Schedule \fComplete the cost of goods manufactured schedule for Kingbird Company. (Assume that all raw materials used were direct materials.) KINGBIRD COMPANY Cost of Goods Manufactured Schedule For the Year Ended December 31, 2022 Work in process, January 1 $26 Direct materials Raw materials inventory, January 1 $ Raw materials purchases 196,800 Total raw materials available for use Less: Raw materials inventory, December 31 29,000 Direct materials used $223,200 Direct labor Manufacturing overhead Indirect labor 23,200 Factory depreciation 44,200 Factory utilities 85,200 Total manufacturing overhead 152,600 Total manufacturing costs Total cost of work in process Less: Work in process, December 31 10 Cost of goods manufactured $66 The following information is available for Skysong Company. Raw materials inventory Work in process inventory Finished goods inventory Materials purchased Direct labor Manufacturing overhead Sales revenue January 1,2022 $23,600 15,900 30,950 2022 $17 1,000 250,800 205,200 1,037,400 December 31,2022 $34,200 19,750 23,940 Compute cost of goods manufactured. (Assume that all raw materials used were direct materials.) SKYSONG COMPANY Cost of Goods Manufactured Schedule