Question

Test (Chapters 1+) Part 1. Problems. There are four problems. Each one is worth the score indicated next to the problem number. Show all work for complete credit. You may write your answers on the test or attach extra pages. Please be NEAT when writing your answers. I cannot grade illegible answers. (30 points possible) 1. (9 points) The following data have been taken from the accounting records of Larder Corporation for the just completed year. Sales. ............................... Purchases of raw materials ............... Direct labor .......... Applied Manufacturing overhead.............. Administrative expenses.......................... Selling expenses ....................................... Raw materials inventory, beginning......... Raw materials inventory, ending......... Work in process inventory, beginning.... Work in process inventory, ending............... Finished goods inventory, beginning........... Finished goods inventory, ending.............. $1,900,000 $320.000 $355,000 $340,000 $325,000 $210,000 $140,000 $190,000 $115,000 $150,000 $175.000 $140,000 Required: a. Prepare a Schedule of Cost of Goods Manufactured in good form. b. Compute the Cost of Goods Sold. c. Using data from your answers above, prepare an Income Statement (using the traditional format).

Answer 1

a) statement of cost of goods manufactured direct materials raw materials inventory beginning 140000 add purchase of raw materials 320000 deduct raw materials inventory ending -190000 direct materials used in production 270000 direct labor 355000 manufacturing overhead 340000 total manufacturing cost 965000 add work in process inventory beginning 115000 deduct work in process inventory ending -150000 cost of goods manufactured 930000 b)schedule of cost of goods sold cost of goods manufactured add beginning finished goods inventory deduct ending finished goods inventory cost of goods sold 930000 175000 -140000 965000

c)Larder corporation income statemnt traditional format sales revenue cost of goods sold gross profit less selling and administration expenses administration expenses seling expenses total selling and administration expenses net income 1900000 965000 935000 210000 325000 535000 400000