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Exam 26: Accounting for Manufacturing Activities

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Question 61

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Fill in the missing line items on the Statement of Cost of Goods Manufactured given. Include corre indentations, underlines, dates, and capitalization when needed. Paige Products Statement of Cost of Goods Manufactured Year Ended December 31, 2019

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Question 62

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Whaler utilizes automated machines to sew sails for its whaling ships. The manufacturing records indicate the Model Z7B sail uses $4,140 of fabric, requires 3 direct labor hours to finish and tie off threads and 8 hours of machine sewing time. The direct labor rate averages $14.00 per hour. Manufacturing overhead is added to the product cost of a sail based on a rate of $45 per machine hour. The company applies a 30% markup on cost. What is the sales price of a Model Z7B sail?

A) $4,542.00.
B) $5,382.00.
C) $5,612.10.
D) $5,904.60.

E) B) and C)
F) None of the above

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Question 63

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Selected account balances for Reed Manufacturing Company on December 31, 2019, the end of the fiscal year, are given below. Data about the beginning and ending inventories are also given. Use this information to prepare a statement of cost of goods manufactured and an income statement for 2019. Raw Materials Inventory 27,000 25,000

The total cost of a manufactured item includes direct materials, direct labor and manufacturing overhead.

Calculate the cost of goods manufactured from the information given: $\begin{array}{lr}\text { Ending Work in Process } & \$ 1,200 \\\text { Manufacturing overhead } & 14,000 \\\text { Selling expense } & 7,000 \\\text { Beginning Work in process } & 10,400 \\\text { Raw materials used (direct) } & 5,700 \\\text { Administrative expense } & 10,000 \\\text { Direct labor } & 7,600\end{array}$

Selected account balances for Reed Manufacturing Company on December 31, 2019, the end of the fiscal year, are given below. Data about the beginning and ending inventories are also given. The company uses a periodic inventory system. Record the adjusting entries for the inventory

The balance of the Manufacturing Summary account is closed into:

Amounts paid to factory repair and maintenance employees are considered direct labor.

The raw materials inventory, the work in process inventory, and the finished goods inventory are all shown in the Current Assets section of the balance sheet.

Wages paid to the factory maintenance and repair personnel of a manufacturing business are shown:

Stellar Manufacturing had a beginning raw materials inventory of $235,000. The firm had net purchases of $636,000 for the period and an ending raw materials inventory of $199,000. What was the cost of raw materials used?

Products that are partially completed are considered work in process.

Indirect labor for a manufacturing business includes the wages of:

An adjusting entry to accrue salaries and wage expenses incurred, but not yet recorded is required prior to closing out a reporting period.