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

ID: 2422012 • Letter: 1

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.

Cost of materials placed in production

$69,000

Direct labor

27,000

Factory overhead

34,000

Work in process, March 1

15,000

Work in process, March 31

19,500

Finished goods inventory, March 1

25,000

Finished goods inventory, March 31

23,000

     2.   Classify the following costs as direct, indirect, or neither:

a)

                                     

indirect labor incurred

b)

                         

factory equipment depreciation

c)

                         

indirect materials used

d)

                         

office equipment depreciation

e)

                         

direct materials used

f)

                         

insurance expired on administrative facilities

g)

                                 

direct labor incurred

h)

                         

administrative office salaries

i)

                         

salespersons’ salaries

j)

                         

utilities on factory building

k)

                         

utilities on administrative facilities

     3.   Magnus Industries has the following data:

Beginning Raw Materials Inventory

$75,000

Materials purchased

$40,000

Ending Raw Materials Inventory

$60,000

Show how you would calculate Raw Materials Used.

     4.   Watson Company has the following data:

Work in Process, Beginning

$18,000

Work in Process, Ending

$25,000

Direct Labor costs incurred

$5,000

Cost of Goods Manufactured

$9,000

Factory Overhead

$7,000

Show how you would calculate the amount of Direct Materials Used.

     5.   Laramie Technologies had the following data:

Cost of Materials Used      $50,000

Direct Labor costs              $56,000

Factory Overhead               $28,000

Work in Process, beg.         $45,000

Work in Process, end.         $32,000

Show your calculations to determine the Cost of Goods Manufactured.

     6.   Keeton Company had the following data:

Cost of Materials Used      $60,000

Direct Labor costs             $58,000

Factory Overhead              $33,000

Work in Process, beg.        $29,000

Work in Process, end.        $18,000

Finished Goods,beg.           $32,000

Finished Goods, end.          $18,000

Show your calculations to determine the Cost of Goods Sold.

     7.   The Zoe Corporation has the following information for the month of March. Prepare a (a) schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) prepare only the inventory section of the balance sheet.

Purchases

$92,000

Materials inventory, March 1

6,000

Materials inventory, March 31

8,000

Direct labor

25,000

Factory overhead

37,000

Work in process, March 1

22,000

Work in process, March 31

23,500

Finished goods inventory, March 1

21,000

Finished goods inventory, March 31

30,000

Sales

257,000

Sales and administrative expenses

79,000

Cost of materials placed in production

$69,000

Direct labor

27,000

Factory overhead

34,000

Work in process, March 1

15,000

Work in process, March 31

19,500

Finished goods inventory, March 1

25,000

Finished goods inventory, March 31

23,000

Explanation / Answer

Requirement 1)

Requirement 2)

Requirement 3)

Requirement 4)

Requirement 5)

Requirement 6)

Requirement 7)

Cost of Goods Manufactured Schedule Particulars Amount (in $) Amount (in $) Cost of Materials Used                  69,000 Direct Labour                  27,000 Factory overhead                  34,000 Total Manufacturing Cost               130,000 Add: Beginning work in process inventory, March                  15,000               145,000 Less; Ending work in process inventory, March 31                  19,500 Cost of Goods Manufactured               125,500 Cost of goods sold Beginning Finished Goods Inventry, March 1                25,000 Add: Cost of Goods Manufactured              125,500 Cost of Goods Available for Sale              150,500 Less:Ending Finished Goods Inventry, March 31                23,000               127,500