Question

Kareen CUT Asal as Sed Income Costs of subcontracted work. Din tal casts Shto overhead... Total cost to January 31. records of Eccles EXERCISE EXERCISE 5-10 Schedules of Cast of Goods Manufactured and Cost of Goods Statement (106) The following data from the just completed year are taken from the accounting reco Company Sales .. $643,000 90.000 132,000 100,000 43,000 210,000 220,000 Direct labour cost.... Raw material purchases Selling expenses... Administrative expenses.. Manufacturing overhead applied to work in proces Actual manufacturing overhead costs.. Beginning of Year End of Year ................... Inventory Raw materials. Work in process... Finished goods ... $ 8,000 5,000 70,000 $10,000 20,000 25,000 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. 3. Prepare an income statement EXERCISE 5-11 Applying Overhead in a Service Company: Journal Entries (L04, LO5, L.07] Creative Web Design uses a job-order costing system to track the costs of its web design projects. The company provides complete website design and hosting services. The following table provides data concerning the three design projects that were in process during May. There was no work in process the beginning of May: Car City Project Jan's Flowers Happy Daycare Designer-hours ..... Direct labour cost..... ... 60 $1,500 80 $2,000 20 Actual overhead costs were $3.000 for Me $ 500 signsr-hours The
Exercise # 5-10

Answer 1

Cost of goods manufactured 8,000 1,32,000 10,000 1,30,000 Beginning raw materials inventory Cost of raw materials purchased (+) Ending raw material inventory balance (-) raw materials used (A) Direct labor cost (+) Manufacturing overhead applied(+) Total Manufacturing Cost (B) Change in work-in-process inventory (C) Opening Work in process (+) Closning Work in process (-) Cost of goods manufactured (B-C) 90,000 2,10,000 4,30,000 5,000 -20,000 -15,000 4,15,000 Cost of goods sold Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory Unadjusted Cost of goods sold Under applied overhead = Cost of goods sold 70,000 4,15,000 -25,000 4,60,000 10,000 4,50,000 Income statement 6,43,000 -4,50,000 1,93,000 Sales Revenue Cost of goods sold Gross Profit (A) Less: Expenses Selling expenses Administrative expenses Total expenses (B) Net income (A-B) 1,00,000 43,000 1,43,000 50,000