If you have any issue in your homework's. Please feel free to contact us.
Tuesday, 31 July 2012
Valenko Company provided the following account balances for the year ended December 31
Valenko Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):
Selling expenses
$
217,000
Purchases of raw materials
$
264,000
Direct labor
?
Administrative expenses
$
159,000
Manufacturing overhead applied to work in process
$
334,000
Total actual manufacturing overhead costs
$
352,000
Inventory balances at the beginning and end of the year were as follows:
Beginning of Year
End of Year
Raw materials
$
55,000
$
37,000
Work in process
?
$
27,000
Finished goods
$
37,000
?
The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $664,000; and the net operating income was $38,000. The company’s overapplied or underapplied overhead is closed entirely to cost of goods sold.
Required:
a.
Prepare a schedule of cost of goods manufactured. (Input all amounts as positive values. Omit the "$" sign in your response.)
Valenko Company
Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning
$ 55,000
Add : Purchases of raw materials
264,000
Total raw materials available
319,000
Deduct : Raw materials inventory, ending
37,000
Raw materials used in production
282,000
Direct labor
69,000
Manufacturing overhead applied to work in process inventory
334,000
Total manufacturing cost
685,000
Add : Beginning work in process inventory
40,000
725,000
Deduct : Ending work in process inventory
27,000
Cost of goods manufactured
$ 698,000
b.
Prepare a schedule of cost of goods sold. (Input all amounts as positive values. Omit the "$" sign in your response.)
Valenko Company
Schedule of Cost of Goods Sold
Finished goods inventory, beginning
$ 37,000
Add : Cost of goods manufactured
698,000
Cost of goods available for sale
735,000
Deduct : Finished goods inventory, ending
71,000
Unadjusted cost of goods sold
664,000
Add : Underapplied overhead
18,000
Adjusted cost of goods sold
$ 682,000
c.
Prepare an income statement for the year. (Input all amounts as positive values. Omit the "$" sign in your response.)
how can we find out the beginning work in process inventory when we need it to calculate the cost of goods manufactured. we can not calculate cost of goods manufactured and we do not know it until we calculate beginning work in process inventory.
How did you get 1096000 for sales on the income statement?
ReplyDeletesale = Net operating income + Selling expenses + administrative expenses + Cost of goods sold
ReplyDeleteI hope, it will help you in it. If you need more help, please feel free to contact me.
Direct labor = Total manufacturing cost-Manufacturing overhead applied to work in process inventory-Raw materials used in production
ReplyDeletewhat if you only have the total actual manufacturing overhead costs?
DeleteBeginning work in process inventory = Cost of goods manufactured +Ending work in process inventory-Total manufacturing cost
ReplyDeleteEnding Finished Goods = Unadjusted cost of goods sold - Cost of goods available for sale
ReplyDeleteI hope, it will help you in it.
how can we find out the beginning work in process inventory when we need it to calculate the cost of goods manufactured. we can not calculate cost of goods manufactured and we do not know it until we calculate beginning work in process inventory.
ReplyDeleteHow do you get COG Manufactured? 698000?
ReplyDeleteHow do you find underapplied overhead 18000???
ReplyDeleteHow do you find underapplied overhead 18000???
ReplyDeleteHow do you find underapplied overhead 18000???
ReplyDeleteActual overhead-applied overhead
ReplyDelete