Question

Chapter 18 Managerial Accounting Concepts and Principles Compute cost of goods sold using the following information sold Finished goods inventory beginning ............ Cost of goods manufactured ..... 5500 4,000 Finished goods inventory ending Compute cost of goods sold using the following information .. Finished goods inventory beginning.... Work in process inventory beginning...... Work in process inventory ending $345.000 83.500 72.100 Cost of goods manufactured... Finished goods inventory ending........ 5918,700 283.600 Prepare the schedule of cost of goods manufactured for Barton Company using the following information Direct materials... Direct labor Factory overhead costs $190.500 63,150 24,000 Work in process, beginning Work in process, ending $157,600 142,750 . Use the following information to compute the cost of direct materials used for the current year. Assume the Raw Materials Inventory account is used only for direct materials Sused January 1 December 31 $ Inventories Raw materials inventory.... Work in process inventory Finished goods inventory Activity during current year Materials purchased Direct labor........ Factory overhead. $ 6,000 12.000 8.500 7,500 9,000 5.500 $123.500 94.000 39.000 agerial Match cach concept with its best description by entering its letter A through in the blank 1. Just-in-time manufacturing A. Focuses on quality throughout the production process. 2. Continuous improvement B. Flexible product designs can be modified to accommodate customer choices 3. Customer orientation C. Every manager and employee constantly looks for ways to improve company operations. 4. Total quality management D. Reports on financial, social, and environmental performance 5. Triple bottom line E. Inventory is acquired or produced only as needed. used C5 3M Co. reports beginning raw materials inventory of $855 million and ending raw materials inventory of $717 million. I 3M purchased 53,610 million of raw materials during the year, what is the amount of raw materials it used during the year? nventory A1 3M Co. reports beginning raw materials inventory of $855 million and ending raw materials inventory of $717 million. Assume 3M purchased 3,646 million of raw materials and used $3.784 million of raw materials during the year, Compute raw materials inventory turnover (round to one decimal) and the num- ber of days' sales in raw materials inventory (round to the nearest day). used Nestlé reports beginning raw materials inventory of 3.815 and ending raw materials inventory of 3.499 (both numbers in millions of Swiss francs). If Nestlé purchased 13.860 (in millions) of raw materials dur ing the year, what is the amount of raw materials it used during the year? ventory Nestlé reports beginning raw materials inventory of 3,815 and ending raw materials inventory of 3,499 (both numbers in millions of Swiss francs). Assume Nestlé purchased 13,860 and used 14,176 (in mil- lions) in raw materials during the year. Compute raw materials inventory turnover (round to one decimal) and the number of days' sales in raw materials inventory (round to the nearest day).

Answer 1

1) Cost of Goods Sold = Finished goods inventory beginning + Cost of goods Manufactured - Finished goods inventory ending

Cost of Goods Sold = $500 +$4,000 - $750 = $3,750

2)Cost of Goods Sold = Finished goods inventory beginning + Cost of goods Manufactured - Finished goods inventory ending

Cost of Goods Sold = $345,000 +$918,700 - $283,600 = $980,100

3)Cost of goods Manufactured = Work in process beginning + Direct Materials + Direct Labors + Factory overhead costs - Work in process ending

Cost of goods Manufactured = $157,600 + $190,500 + $63,150 + $24,000 - $142,750 = $292,500

4)Cost of direct material used = Raw material Inventory beginning + Purchase of raw material - Raw material Inventory Ending

Cost of direct material used = $6,000 + $123,500 - $7,500 = $122,000

5)Match the following is as follows:

1)Just In time Manufacturing = E) Inventory is acquired or produced only as needed

2)Continuous Improvement = C) Every manager and employees constantly looks for way to improve company operation

3)Customer Orientation = B) Flexible product design can be modified to accommodate customer choices

4)Total Quality Management = A) Focus on quality through the production process

5)Triple Bottom Line =D) Report on financial,Social and environmental performance

6)Cost of raw material inventory used = Raw material Inventory beginning + Purchase of raw material - Ram material Inventory Ending

Cost of raw material inventory used = $855 Million + $3,646 Million - 717 Million = $3,784 Million

7)Raw material inventory turnover ratio = Raw material used/ Average stock of material

=$3,784 Million/($855 Million + 717 Million)/2

=$3784 Million/$786 Million

=4.81

Number of days sales in raw material inventory = 365 Days/ 4.81 = 76 Days

8)Cost of raw material inventory used = Raw material Inventory beginning + Purchase of raw material - Ram material Inventory Ending

Cost of raw material inventory used =$3,815 million + 13,860 million - 3,499 million = $14,176 Million

9)Raw material inventory turnover ratio = Raw material used/ Average stock of material

=$14,176 Million/($3,815 Million + 3,499 Million)/2

=$14,176 Million/$3,657 Million

=3.88

Number of days sales in raw material inventory = 365 Days/ 3.88 = 94 Days