16-31A Preparing a schedale of cost of goods manufactured an atement for a manuf

Question

16-31A Preparing a schedale of cost of goods manufactured an atement for a manufacturing company P16-32A Prepa Certain iten of goods ma Yum Yum Treats manufactures its own brand of pet chew bones A December 2016, the accounting records showed the following the Beginning Ending 13,100 8,500 2,500 5,700 in the blank Raw Materials Work-in-Process Finished Goods Other information: Raw materials purchases Plant janitorial services Sales salaries Delivery costs Sales revenue Utilities for plant Rent on plant Customer service hotline costs Direct labor 0 Direct s 30,000 800 5,000 1,800 105,000 1,100 16,000 1,000 18,000 Ending F Direct Direct Manufact Total Total Requirements 1. Prepare a schedule of cost of goods manufactured for Yum Yum Treats for the y 2. Prepare an income statement for Yum Yum Treats for the year ended Deceme 3. How does the format of the income statement for Yum Yum Treats 4. Yum Yum Treats manufactured 17,600 units of its product inent ended December 31, 2016. 2016. income statement of a merchandiser? differ from 16. Compur companys unit product cost for the year, rounded to the nearest cnt

Explanation / Answer

1.

2.

3. The format of the income statement for Yum Yum Treats differs from the income statement of a merchandiser in respect of the cost of goods sold which for Yum Yum Treats includes the cost of goods manufactured along with the beginning and ending finished goods inventory while in the case of a merchandiser, the cost of goods sold will include the merchandise purchased along with the beginning and ending finished goods inventory.

4. Unit product cost = Cost of goods manufactured/Number of units manufactured = $68000/17600 = $3.86

Yum Tum Treats Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2016 Beginning raw materials $ 13100 Add: Raw material purchases 30000 Raw materials available for use 43100 Less: Ending raw materials 8500 Direct materials used 34600 Direct labor 18000 Manufacturing overhead s Plant janitorial services 800 Utilities for plant 1100 Rent on plant 16000 Total manufacturing overheads 17900 Total current manufacturing costs 70500 Add: Beginning work in process 0 Total cost of work in process 70500 Less: Ending work in process 2500 Cost of goods manufactured $ 68000

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