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Exercise 14-11 Incomplete manufacturing cost data for Colaw Company for 2014 are

ID: 2461130 • Letter: E

Question

Exercise 14-11 Incomplete manufacturing cost data for Colaw Company for 2014 are presented as follows for four different situations. Indicate the missing amount for each letter. Direct Materials Used Direct Labor Used Manufacturing Overhead Total Manufacturing Costs Work in Process 1/1 Work in Process 12/31 Cost of Goods Manufactured (1) $127,000 $140,000 $87,000 $ (a) $33,000 $ (b) $360,000 (2) (c) 200,000 132,000 450,000 (d) 40,000 470,000 (3) 80,000 100,000 (e) 255,000 60,000 80,000 (f) (4) 70,000 (g) 75,000 288,000 45,000 (h) 270,000 Prepare a condensed cost of goods manufactured schedule for situation (1) for the year ended December 31, 2014. COLAW COMPANY Cost of Goods Manufactured Schedule For the Year Ended December 31, 2014 Cost of Goods ManufacturedDirect LaborDirect MaterialsManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, January 1Work in Process Inventory, December 31 $ Cost of Goods ManufacturedDirect LaborDirect MaterialsManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, January 1Work in Process Inventory, December 31 $ Cost of Goods ManufacturedDirect LaborDirect MaterialsManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, January 1Work in Process Inventory, December 31 Cost of Goods ManufacturedDirect LaborDirect MaterialsManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, January 1Work in Process Inventory, December 31 Cost of Goods ManufacturedDirect LaborDirect MaterialsManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, January 1Work in Process Inventory, December 31 Cost of Goods ManufacturedDirect LaborDirect MaterialsManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, January 1Work in Process Inventory, December 31 AddLess : Cost of Goods ManufacturedDirect LaborDirect MaterialsManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, January 1Work in Process Inventory, December 31 Cost of Goods ManufacturedDirect LaborDirect MaterialsManufacturing OverheadTotal Cost of Work in ProcessTotal Manufacturing CostsWork in Process, January 1Work in Process Inventory, December 31 $

Explanation / Answer

Solution :

Direct

Direct

Total

Work in

Work in

Materials

Labor

Manufacturing

Manufacturing

Process

Process

Cost of Goods

Used

Used

Overhead

Costs

1/1.

12/31.

Manufactured

1

     127,000

140,000

                 87,000

               354,000

(a)

    33,000

    27,000

(b)

             360,000

2

     118,000

(c)

200,000

               132,000

               450,000

    60,000

(d)

    40,000

             470,000

3

       80,000

100,000

                 75,000

(e)

               255,000

    60,000

    80,000

             235,000

(f)

4

       70,000

143,000

(g)

                 75,000

               288,000

    45,000

    63,000

(h)

             270,000

Formula

Direct material +direct labour+manufacturing overhead=Total manufactuing cost

Total manufacturing cost + Begining WIP-ending WIP=Cost of goods manufactured

condensed cost of goods manufactured schedule for situation (1) for the year ended December 31, 2014

$

Direct materials used

127,000

Add :

Direct Labour

140,000

Add :

Manufacturing overhead

87,000

Total manufacturing cost

354,000

Add :

Work in Process, January 1

33,000

Less :

Work in Process Inventory, December 31

-27,000

Cost of goods manufactured

360,000

Direct

Direct

Total

Work in

Work in

Materials

Labor

Manufacturing

Manufacturing

Process

Process

Cost of Goods

Used

Used

Overhead

Costs

1/1.

12/31.

Manufactured

1

     127,000

140,000

                 87,000

               354,000

(a)

    33,000

    27,000

(b)

             360,000

2

     118,000

(c)

200,000

               132,000

               450,000

    60,000

(d)

    40,000

             470,000

3

       80,000

100,000

                 75,000

(e)

               255,000

    60,000

    80,000

             235,000

(f)

4

       70,000

143,000

(g)

                 75,000

               288,000

    45,000

    63,000

(h)

             270,000

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