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    Banitog, Brigitte C. BSA 211

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    Myunimint
    The document provides information about Canseco Company's: 1) Schedule of cost of goods manufactured for 20X1, including direct materials, direct labor, indirect manufacturing costs, and beginning/ending work-in-process inventory. 2) Income statement for 20X1, showing revenues of $300,000, cost of goods sold of $131,000, and operating income of $47,000. 3) Journal entries, T-accounts, and cost of goods sold statement for direct materials, manufacturing overhead, work-in-process, and finished goods inventory for 20X1.

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    Banitog, Brigitte C. BSA 211

    Uploaded by

    Myunimint
    99 views8 pages
    The document provides information about Canseco Company's: 1) Schedule of cost of goods manufactured for 20X1, including direct materials, direct labor, indirect manufacturing costs, and beginning/ending work-in-process inventory. 2) Income statement for 20X1, showing revenues of $300,000, cost of goods sold of $131,000, and operating income of $47,000. 3) Journal entries, T-accounts, and cost of goods sold statement for direct materials, manufacturing overhead, work-in-process, and finished goods inventory for 20X1.

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    BANITOG_CHAPTER 5

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    The document provides information about Canseco Company's: 1) Schedule of cost of goods manufactured for 20X1, including direct materials, direct labor, indirect manufacturing costs, and beginning/ending work-in-process inventory. 2) Income statement for 20X1, showing revenues of $300,000, cost of goods sold of $131,000, and operating income of $47,000. 3) Journal entries, T-accounts, and cost of goods sold statement for direct materials, manufacturing overhead, work-in-process, and finished goods inventory for 20X1.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    99 views8 pages

    Banitog, Brigitte C. BSA 211

    Uploaded by

    Myunimint
    The document provides information about Canseco Company's: 1) Schedule of cost of goods manufactured for 20X1, including direct materials, direct labor, indirect manufacturing costs, and beginning/ending work-in-process inventory. 2) Income statement for 20X1, showing revenues of $300,000, cost of goods sold of $131,000, and operating income of $47,000. 3) Journal entries, T-accounts, and cost of goods sold statement for direct materials, manufacturing overhead, work-in-process, and finished goods inventory for 20X1.

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    BANITOG, BRIGITTE C.

    BSA 211

    CHAPTER 5
    1. Prepare a schedule of cost of goods manufactures for 20X1.

    Canseco Company

    Schedule Cost of Goods Manufactured

    Year Ended December 31, 20X1 (in thousands)

    Direct materials:

    Beginning inventory, Jan. 1, 20X1 22,000

    Purchase cost of direct materials 75,000

    Cost of direct materials available for use 97,000

    Ending inventory, Dec. 31, 20X1 26,000

    Direct materials used 71,000

    Direct manufacturing labor 25,000

    Indirect manufacturing costs:

    Indirect manufacturing labor 15,000


    Plant insurance 9,000

    Depreciation - plant, building, and equipment 11,000

    Repairs and maintenance - plant 4,000

    Total indirect manufacturing costs 39,000

    Manufacturing costs incurred during 20X1 135,000

    Beginning work-in-process inventory, Jan 1, 20X1 21,000

    Total manufacturing costs to account for 156,000

    Ending work-in-process inventory, Dec. 31, 20X1 20,000

    Cost of goods manufactured 136,000

    2. Revenues in 20X1 were P300 million. Prepare the 20X1 income statement:

    Canseco Company

    Income statement

    Year Ended December 31, 20X1 (in thousands)

    Revenues 300,000

    Cost of goods sold:

    Beginning finished goods, Jan. 1, 20X1 18,000

    Cost of goods manufactured 136,000

    Cost of goods available for sale 154,000

    Ending finished goods, Dec. 31 20X1 23,000

    Cost of goods sold 131,000

    Gross margin 169,000

    Operating costs:
    Marketing, distribution, and customer-service costs 93,000

    General and administrative costs 29,000

    Total operating costs 122,000

    Operating income/(loss) 47,000

    PROBLEM 1
    1) Journal Entries:
    Date Accounts Title Debit (P) Credit (P)

    1 Direct material 80,000

    Accounts Payable 80,000

    (being purchase of direct materials)

    2 Work in Progress 42,000

    Manufacturing Overhead 11,500

    Wages payable 53,500

    (being labor made payable)

    3 Manufacturing Overhead 67,200

    Accounts Payable 67,200

    (being manufacturing equipment purchased)

    4 Manufacturing Overhead 80,500

    Accounts Payable 80,500

    (being other manufacturing overhead incurred)

    5 Work in Progress 56,000

    Direct material 56,000

    (being 70% of DM transferred to WIP)

    5.1 Work in Progress 159,200

    Manufacturing Overhead 159,200

    (Being all Manufacturing overhead transferred to WIP A/C)


    6 Finished Goods 154,320

    Work in Progress 154,320

    Goods finished= (42,000+56,000+159,200) *60%=154,320

    7 COGS 138,888

    Finished Goods 138,888

    (Being 90% of the finished goods sold)

    2) T-Accounts:

    Direct Material A/c

    Debit Amount Credit Amount

    AP 80,000 WIP 56,000

    CB 24,000

    Manufacturing Overhead A/c

    Sup. Labor 11,500 WIP 159,200

    Manu. Eq. 67,200

    Other exp 80,500

    Work in Progress A/c

    DM 56,000 FG Inv. 154,320

    DL 42,000 CB 102,880

    Manu. o/h 159,200

    Total 257,200 Total 257,200


    Finished Goods Inventory A/c

    WIP 154,320 COGS 138,888

    CB 15,432

    Cost of Goods Sold A/c

    FG Inv. 138888

    3) Cost of Goods Sold Statement:

    Amount

    Material:

    Purchased 80,000

    Less: CB 24,000

    Direct mat. Applied 56,000

    Direct labor applied 42,000

    Manuf. Overhead 159,200

    Total Manuf. Costs incurred 257,200

    Less: WIP - CB (102,880)

    Finished Goods 154,320

    Less: FG-CB (15,432)

    Cost of Goods Sold 138,888

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