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    KEY Seatwork 4.2 Inventory

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    kingchez2304

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    KEY Seatwork 4.2 Inventory

    Uploaded by

    kingchez2304
    6 views6 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    6 views6 pages

    KEY Seatwork 4.2 Inventory

    Uploaded by

    kingchez2304

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 6

    Problem 4 - Inventory

    Fill up the missing figures


    Co. Alpha
    Sales 3,000
    Cost of goods sold
    Beginning Inventory 300

    Plus: Purchases 975


    Less Ending Inventory 225
    Cost of goods sold 1,050
    Gross Margin 1,950
    Period Expenses 300
    Net Income/(loss) 1,650

    Problem 5 - Inventory

    Spencer Manufacturing Company has the following balances

    A. Materials Inventory 150,000


    B Work in process 400,000
    C Finished goods 80,000

    During the period the following occurred:

    1 Purchased for cash worth of raw materials 870,000


    Delivery charges for these materials were 23,000
    2 Worth of direct labor used in the production pro 570,000
    3 Worth of materials used in the production proce 850,000
    4 The following costs were incurred:
    Indirect labor 30,000
    Factory supplies used 40,000
    Property taxes and insurance 10,000
    Depreciation factory 60,000
    Factory utilities 150,000
    Depreciation - manufacturing 40,000
    Selling and Administrative 20,000
    5 Worth of work in process inventory transferred t 2,000,000
    6 Sales were 3,000,000
    7 The ending balance in Finished goods inventory 90,000

    Calculate the Ending Materials and Work in Process Inventory balances.

    Materials Inventory WIP


    Beg Balance 150,000 400,000
    1. Purchase 870,000
    Delviery charge 23,000
    2. Direct Labor 570,000
    3. Materials transfer -850,000 850,000
    4. Indirect labor 30,000
    Factory supplies 40,000
    Depreciation-factory 60,000
    Factory utilities 150,000
    Depreciation – Mfg 40,000
    Property taxes 10,000
    5. Finished goods-transfers -2,000,000
    Cost of goods sold 193,000 150,000

    Ending balance 193,000 150,000


    A B
    What was Marks Manufacturing’s gross margin during the period?

    Sales 3,000,000
    Cost of Goods sold 1,990,000
    Gross Margin 1,010,000
    Problem 4
    1
    Co. Bravo Co. Charlie Co. Delta 2
    300 1,500 2,000 3
    4
    225 650 300 Problem 5

    975 850 1,200 5


    300 300 250 6
    900 1,200 1,250 7
    - 600 300 750 8
    400 150 800
    - 1,000 150 -50

    FG
    80,000

    2,000,000
    2,080,000
    1,990,000
    90,000
    Questions Answers
    Problem 3: How much is the Net Income/loss of Co. Alpha? 1,650
    Problem 3: How much is the Net Income/loss of Co. Bravo? -1,000
    Problem 3: How much is the Cost of Goods sold of Company Charlie? 1,200
    Problem 3: How much is the Ending inventory of Co. Delta? 250

    Problem 4: How much is the ending materials inventory balance of Spencer Company? 193,000
    Problem 4: How much is the WIP ending balance of Spencer Company? 150,000
    Problem 4: How much is the Cost of Goods sold of Spencer Company? 1,990,000
    Problem 4: How much is the Gross margin of Spencer Company? 1,010,000
    1,650
    -1,000
    1,200
    250

    193,000
    150,000
    1,990,000
    1,010,000

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