Question

Question 2 (3 marks - suggested time 4 minutes) Compute the missing amounts. (Show all your calculations below) Moose Jaw Company Weyburn Company Sales $200,000 Cost of Goods Sold Beginning Inventory 60.000 Cost of Goods Manufactured 118,000 COGS Available for Sale 180,000 Ending Inventory 4000 4000 Cost of Goods Sold 120,000 Gross Margin 80,000 224,000 Selling and Admin Expenses 170,000 Operating Income 24,000 54,000 Question 3 (8 marks - suggested time 10 minutes) The following amounts were taken from the general ledger of the Western Manufacturing Company. a) Prepare a formal cost of goods manufactured statement for the company for the year ended December 31.6 marks) raw materials inventory beg, or year Raw materials inventory - end of year Work in process inv-beg of year Work in process inv- end of year Finished goods inv-begot year Finished goods in- end of year Purchase of direct materials Indirect product costs General and administration exp. Direct labor Marketing expenses $50.000 56.000 100 000 70,000 36.000 So 0001 30.000 27000 25.000 40.000 Question 4 (3 marks - suggested time 4 minutes) Danielle Nicole has been onerating a dental nractice for the

Answer 1

1st Answer)

Moose Jaw Company 200000 Weyburn Company 400000 Sales Cost of goods sold Beginning Inventory Cost of goods manufactured COGS Available for sale Ending Inventory Cost of goods sold Gross Margin Selling and Admin Expenses Operating Income 6000 118000 124000 4000 120000 80000 56000 24000 60000 120000 180000 4000 176000 224000 170000 54000

Explanation:

1) Ending Inventory + Cost of goods sold

= 4000 + 120000 = 124000

2) COGS Available for sale - Cost of goods manufactured

= 124000 - 118000 = 6000

3) Gross Margin - Operating Income

= 80000 - 24000

4) COGS available for sale - beginning inventory

= 180000 - 60000

= 120000

5) COGS Available for sale - Ending Inventory

= 180000 - 4000

= 176000

6) Cost of goods sold + Gross Margin

= 176000 + 224000

= 400000

2nd Answer

Schedule of Cost of Goods Manufactured Direct materials used: Raw materials, beginning 50000 Add: Purchases of raw materials 30000 Raw materials available for use 80000 Less: Raw materials, ending 56000 Raw materials used in production 24000 Direct Labor 164000 Manufacturing Overhead 82000 Total Manufacturing costs Add: WIP, Beginning 270000 100000 370000 70000 300000 Less: WIP, Ending Cost of Goods Manufactured