1. Prepare a performance report showing both month and year-to-date data for Pos

Question

1. Prepare a performance report showing both month and year-to-date data for Post Manufacturing’s Machining Department for February, 2011 using the following data:
January February
Budgeted Data:
Machinists’ wages $6,200 $5,600
Supplies 3,200 3,000
Depreciation 2,000 2,000
Utilities 1,500 1,400

Actual Data:
Machinists’ wages $6,120 $5,650
Supplies 3,300 3,180
Depreciation 2,000 2,000
Utilities 1,580 1,390




2. The following data was taken from the general ledger and other records of Marwick Manufacturing Co. at January31, the end of the first month of operations in the current fiscal year:

Sales $650,000
Inventories at January 31:
     Materials inventory 20,000
     Work in process inventory 32,000
     Finished goods inventory 54,000
Inventories at January 1:
     Materials 25,000
     Work in process 29,000
     Finished goods 48,000
Materials purchased 154,000
Labor Costs:
     Assembly workers’ wages    185,000
     Supervisors’ salaries     30,000
     Sales personnel salaries     52,000
Depreciation:
     Factory building 73,000
     Sales office 28,000
Indirect materials used 3,000
Factory utilities 67,000


a. Prepare a statement of cost of goods manufactured.
b. Determine the cost of goods sold for the month.

Explanation / Answer

Ans. 1 Budget Actual Variance Expenses February Total February Total February total Machinists's Wages 5600 11800 5650 11770 50 U 30 F Supplies 3000 6200 3180 6480 180 U 280 U Depreciation 2000 4000 2000 4000 Utilities 1400 2900 1390 2970 10 F 70 U Total 12000 24900 12220 25220 220 U 320 U Ans. 2 Direct Materials: Amount Amount Inventory, jan 1 25000 Purchases 154000 Total cost of avaialble materials 179000 Less: Inventory, jan 31 -20000 Cost of materials used 159000 Less: indirect materials used -3000 cost of direct materials used in production 156000 Direct Labor 185000 Factory overhead: Indirect materials 3000 indirect labor (supervisors) 30000 Depreciation 73000 Utilities 67000 Total factory overhead 173000 Total manufacturing cost 514000 Add: WIP opening 29000 Less: WIP closing -32000 Cost of goods manufactured 511000 b Cost of goods manufactured 511000 Add: Opening finished goods 48000 Less: Closing finished goods -54000 Cost of goods sold 505000

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