ZuoTi.Pro
Question

Madam Oak’s Furniture manufactures wooden rocking chairs. Madam Oak’s Furniture purchased the following materials in June:...

Madam Oak’s Furniture manufactures wooden rocking chairs. Madam Oak’s Furniture purchased the following materials in June: 1,500 springs (part of the rocking mechanism) at a cost of $15,000; each chair uses 2 springs Glue at a cost of $1,500 (enough to manufacture 500 chairs) Stain at a cost of $500 (enough to manufacture 500 chairs) Wood at a cost of $5,000 (enough to build 1,000 chair frames) Madam Oak’s Furniture produced 500 chairs during June and had no beginning balances in raw materials, work in process, or finished goods inventories. Required A. Which of Madam Oak’s material costs would likely be classified as direct materials? Which as indirect materials? B. If Madam Oak’s Furniture completed only 400 of the 500 chairs on which production was started, what is the finished goods inventory account balance at the end of June? C. If 380 of the finished chairs were sold, what would be the cost of goods sold? D. What is the work in process inventory account balance at the end of June?

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Given,

1500 spring. = $15000. (2 springs for each chair)

Glue. = $1500. (For 500 chairs)

Stain. = $500. (For 500 chairs)

Wood. = $5000. ( for 1000 chairs)

Production is 500 chairs, no opening inventory.

Required A,

Direct material for 500 chairs

Spring = $10000

( 2 spring × 500 chairs= 1000spring).

Glue. = $1500

Stain. = $500

Wood. = $2500

(5000÷1000×500)

::total. $14500

Indirect material

Spring = $ 5000

($15000-$10000)

Wood. = $2500

($5000-$2500)

:: total. $7500

Required B,

Cost of finished goods inventory for 400 chairs,

Spring(15000÷1500×800). = $8000

(400× 2 spring). = 800 springs

Glue (1500÷500×400). = $1200

Stain (500÷500×400). =$ 400

Wood(5000÷1000×400). =$2000

:: total. = $11600

Required C,

Cost of 380 chairs sold:

Spring (15000÷1500×760). = $7600

(380 chairs×2 springs)

Glue(1500÷500×380). = $1140

Stain (500÷500×380). = $380

Wood(5000÷1000×380). = $1900

::total. = $11020

Required D,

Total chairs. = 500

Chairs produced = 400

Therefore,

Work in progress. = 100

Cost of work in process(100 chairs)

Spring (15000÷1500×200). = $2000

(100 chairs × 2 spring)

Glue (1500÷500×100). = $300

Stain(500÷500×100). = $100

Wood (5000÷1000×100). =$500

::total. = $2900

Summary,

Determination of cost of goods sold,work in progress.

0 0
Add a comment
Know the answer?
Add Answer to:
Madam Oak’s Furniture manufactures wooden rocking chairs. Madam Oak’s Furniture purchased the following materials in June:...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Process costing system Eminence Corporation makes rocking chairs. The chairs move through two departments during production....

    Process costing system Eminence Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chair parts in the cutting department, which transfers the parts to the assembly department for completion. The company sells the unfinished chairs to hobby shops. The following transactions apply to Eminence's operations for its first year, 2018. (Assume that all transactions are for cash unless otherwise stated.) 1. The company was started when it acquired a $47,000 cash contribution from...

  • Perez Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut...

    Perez Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chair parts in the cutting department, which transfers the parts to the assembly department for completion. The company sells the unfinished chairs to hobby shops. The following transactions apply to Perez's operations for its first year, Year 1. (Assume that all transactions are for cash unless otherwise stated.) 1. The company was started when it acquired a $110,000 cash contribution from the owners....

  • Scholastic Furniture, Inc. manufactures a variety of desks, chairs, tables, and shelf units that are sold...

    Scholastic Furniture, Inc. manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Midwest. The controller of the company’s Desk Division is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the division’s sales manager. April 10,000 desk-and-chair sets May 12,000 desk-and-chair sets June 15,000 desk-and-chair sets Each desk-and-chair set requires 10 board feet of pine planks and 1.5 hours of...

  • Zachary Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut...

    Zachary Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chair par in the cutting department, which transfers the parts to the assembly department for completion. The company sells the unfinished chairs to hobby shops. The following transactions apply to Zachary's operations for its first year, 2018. (Assume that all transactions an for cash unless otherwise stated) 1 The company was started when it acquired a $130.000 cash contribution from the owners 2....

  • Scholastic Furniture, Inc. manufactures a variety of desks, chairs, tables, and shelf units that are sold...

    Scholastic Furniture, Inc. manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Midwest. The controller of the company’s Desk Division is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the division’s sales manager. April 10,000 desk-and-chair sets May 12,000 desk-and-chair sets June 15,000 desk-and-chair sets Each desk-and-chair set requires 10 board feet of pine planks and 1.5 hours of...

  • Entries for Materials GenX Furnishings Company manufactures designer furniture. GenX Furnishings uses a A type of...

    Entries for Materials GenX Furnishings Company manufactures designer furniture. GenX Furnishings uses a A type of cost accounting system that provides for a separate record of the cost of each particular quantity of product that passes through the factory.job order cost system. Balances on June 1 from the The subsidiary ledger containing the individual accounts for each type of material.materials ledger are as follows: Fabric $23,800 Polyester filling 7,100 Lumber 53,300 Glue 2,300 The materials purchased during June are summarized...

  • David’s company uses a process costing system in the manufacture of chairs. David’s worked on 2,600...

    David’s company uses a process costing system in the manufacture of chairs. David’s worked on 2,600 chairs the past month, 2,200 of which were completed during the period. The remaining chairs were 40% complete. Each chair requires $15 in direct materials that are included in the process when a chair is started. During the month the direct labor and manufacturing overhead for the period was $70,000 and there were $600 direct labor and manufacturing overhead at the beginning of the...

  • ii) Treehouse Furniture manufactures a variety of desks, chairs, tables and shelf units which are sold...

    ii) Treehouse Furniture manufactures a variety of desks, chairs, tables and shelf units which are sold to public school systems throughout Queensland. The accountant of the company's School Desk Division is currently preparing a budget for the first quarter of 20x9. The following sales forecast has been made by the division's sales manager. January February March 5,000 desk and chair sets 6,000 desk and chair sets 7,500 desk and chair sets Each desk and chair set requires 10 metres of...

  • XLS 4-28 Job order costing (CMA adapted) (LO 5) ErgoFurn, Inc. manufactures ergonomically designed computer furniture....

    XLS 4-28 Job order costing (CMA adapted) (LO 5) ErgoFurn, Inc. manufactures ergonomically designed computer furniture. ErgoFurn uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: Job No. Item Units Accumulated Cost CC723 Computer caddy 20,000 $ 900,000 CH291 Chair 15,000 431,000 PS812 Printer stand 25,000 250,000 $1,581,000 On November 30, ErgoFurn's Raw Materials Inventory account totaled $668,000, and its Finished Goods Inventory totaled $3,456,400. ErgoFurn applies manufacturing overhead on...

  • Swifty, Inc. manufactures ergonomically designed computer furniture. Swifty uses a job order costing system. On November...

    Swifty, Inc. manufactures ergonomically designed computer furniture. Swifty uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: Job CC73 Computer Caddy, 23,000 units, $970,000 accumulated cost Job CH291 Chair, 16,000 units, $434,000 accumulated cost Job PS812 Printer stand, 30,000 units, $252,000 accumulated cost Total cost $1,656,000 On November 30, Swifty’s Raw Materials Inventory account totaled $676,000, and its Finished Goods Inventory totaled $3,476,400. Swifty applies manufacturing overhead on the basis...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT