1· The Zoe Corporation has the following information for the month March. Determ

Question

1· The Zoe Corporation has the following information for the month March. Determine the (a) cost of goods manufactured, and (b) cost of goods sold. Direct l Factory Work in process, Marc Work in Finished goods inventory, March Finished 9,000 7,000 4.000 15,000 19,500 5,000 23,000 March 31 s inventory, March 31 2. Classify the following costs as direct indirect, or neither a) indirect labor incurred acto indirect materials used office direct materials used quipment de c) d) e) t depreciation tive facilitics direct labor i administrative office salaries h) buildin utilities on f utilitics on administrative facilities 3. Magnus Industries has the following data: Raw M Materials purchased Ending Raw Materials Invento 75,000 S40,000 S60,000 Show how you would calculate Raw Materials Used

Explanation / Answer

1)

2)

a)

indirect

Indirect labour incurred

b)

indirect

factory equipment depreciation

c)

indirect

indirect materials used

d)

neither

office equipment deprciation

e)

direct

direct materials used

f)

neither

insurance expired on administrative facilities

g)

direct

direct labour incurred

h)

neither

administrative office salaries

i)

neither

salesperson's salaries

j)

indirect

utilities on factory building

k)

neither

utilities on administrative facilities

3)

Raw Material used in production

= beginning inventory + purchase - ending inentory

= $75000 + $40000 -$60000 = $55000

4)

Cost of goods manufactured

  9,000.00

Add: ending WIP

  25,000.00

Total

  34,000.00

Less:

beginning WIP

  18,000.00

Direct labour

    5,000.00

Factory overhead

    7,000.00

  30,000.00

Direct material used

    4,000.00

5)

Cost Sheet

$

$

beginning Work In process Inventory

45000

Direct material used

50000

direct labour

56000

manufacturing overhead

28000

total manufacturing cost during the year

134000

total manufacturing cost to account for

179000

Less: ending work in process inventory

32000

cost of goods manufactured

147000

6)

Cost Sheet

$

$

beginning Work In process Inventory

29000

Direct material used

60000

direct labour

58000

manufacturing overhead

33000

total manufacturing cost during the year

151000

total manufacturing cost to account for

180000

Less: ending work in process inventory

18000

cost of goods manufactured

162000

Add: beginning inventory of finished goods

32000

Cost of goods available for sale

194000

Less: ending inventory of finished goods

18000

cost of goods sold

176000

7)

Sales

257000

Less: cost of goods sold

141500

Gross profit

115500

Less: Sales and administrative expenses

79000

Net Income ($)

36500

7)

Balance sheet as on 31st march (Partial)

Current Assets Section

$

Work in process

23500

Raw material Inventory

8000

Finished Goods inventory

30000

61500

Cost Sheet $ $ beginning Work In process Inventory 15000 Direct material used in production 69000 direct labour 27000 manufacturing overhead 34000 total manufacturing cost during the year 130000 total manufacturing cost to account for 145000 Less: ending work in process inventory 19500 cost of goods manufactured 125500 Add: beginning inventory of finished goods 25000 Cost of goods available for sale 150500 Less: ending inventory of finished goods 23000 cost of goods sold 127500

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