Question
Work in process, January 1, 2019 $10.00 Plant utilities $8.00 Direct materials, December 31, 2019 7.00 Indirect manufacturing labour 26.00 Finished goods, December 31, 2019
Work in process, January 1, 2019
$10.00
Plant utilities
$8.00
Direct materials, December 31, 2019
7.00
Indirect manufacturing labour
26.00
Finished goods, December 31, 2019
19.00
Depreciationplant, building, and equipment
14.00
Accounts payable, December 31, 2019
21.00
Revenues
435.00
Accounts receivable, January 1, 2019
61.00
Miscellaneous manufacturing overhead
12.00
Work in process, December 31, 2019
5.00
Marketing, distribution, and customer-service costs
109.00
Finished goods, January 1, 2019
43.00
Purchases of direct materials
80.00
Accounts receivable, December 31, 2019
33.00
Direct manufacturing labour
46.00
Accounts payable, January 1, 2019
42.00
Plant supplies used
4.00
Direct materials, January 1, 2019
39.00
Property taxes on plant
1.00
The following items (in millions) pertain to the
Chester
Corporation:
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Chester's
manufacturing cost system uses a three-part classification of manufacturing costs. There are two prime costs and one conversion cost: direct materials, direct manufacturing labour, and indirect manufacturing costs.
Requirement 1. Identify the prime costs. Identify the conversion costs.
Complete the table below. (Leave any unused cells blank.)
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Requirement 2. Prepare a statement of comprehensive income and a supporting schedule of cost of goods manufactured.
Start with the direct costs on the schedule of cost of goods manufactured, then continue with the indirect manufacturing costs, and then compute the cost of goods manufactured. (Work in millions. Enter the amounts rounded to two decimal places.)
| Chester Company | ||||
| Schedule of Cost of Goods Manufactured | ||||
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| Manufacturing costs incurred during 2019 |
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Now, prepare the statement of comprehensive income. (Work in millions. Enter the amounts rounded to two decimal places. Enter parentheses or a minus sign for an operating loss.)
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| Statement of Comprehensive Income | |||||
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Fundamental Financial Accounting Concepts Paperback By Edmonds Thomas P O
Authors: Thomas P. Edmonds, Christopher Edmonds, Mark A. Edmonds, Jennifer Edmonds, Philip R. Olds
11th Edition
9781264266234, 1264266235
