Question : 7) Cost of goods sold refers to the products brought : 1211946

7) Cost of goods sold refers to the products brought to completion, whether they were started before or during the current accounting period.

8) Springfield Manufacturing produces electronic storage devices, and uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and indirect manufacturing costs. Total indirect manufacturing costs for January were $300 million, and were allocated to each product on the basis of direct manufacturing labor costs of each line. Summary data (in millions) for January for the most popular electronic storage device, the Big Bertha, was:

Big Bertha

Direct manufacturing costs

$4,500,000

Direct manufacturing labor costs

$1,500,000

Indirect manufacturing costs

$4,250,000

Units produced

40,000

Required:

a.Compute the manufacturing cost per unit for each product produced in January.

b.Suppose production will be reduced to 30,000 units in February. Speculate as to whether the unit costs in February will most likely be higher or lower than unit costs in January; it is not necessary to calculate the exact February unit cost. Briefly explain your reasoning.

9) Helmer Sporting Goods Company manufactured 100,000 units in 2015 and reported the following costs:

Sandpaper$ 32,000Leasing costs-plant$ 384,000

Materials handling320,000Depreciation-equipment224,000

Coolants & lubricants22,400Property taxes-equipment32,000

Indirect manufacturing labor275,200Fire insurance-equipment16,000

Direct manufacturing labor2,176,000Direct material purchases3,136,000

Direct materials, 1/1/15384,000Direct materials, 12/31/15275,200

Finished goods, 1/1/15672,000Sales revenue12,800,000

Finished goods, 12/31/151,280,000Sales commissions640,000

Work-in-process, 1/1/1596,000Sales salaries576,000

Work-in-process, 12/31/1564,000Advertising costs480,000

Administration costs800,000

Required:

a.What is the amount of direct materials used during 2015?

b.What manufacturing costs were added to WIP during 2015?

c.What is cost of goods manufactured for 2015?

d.What is cost of goods sold for 2015?

10) Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted:

Work-in-process inventory (January 1)$ 140,400

Work-in-process inventory (March 31)171,000

Finished goods inventory (January 1)540,000

Finished goods inventory (March 31)510,000

Direct materials used378,000

Indirect materials used84,000

Direct manufacturing labor480,000

Indirect manufacturing labor186,000

Property taxes on manufacturing plant building28,800

Salespersons’ company vehicle costs12,000

Depreciation of manufacturing equipment264,000

Depreciation of office equipment123,600

Miscellaneous plant overhead135,000

Plant utilities92,400

General office expenses305,400

Marketing distribution costs30,000

Required:

a.Prepare a cost of goods manufactured schedule for the quarter.

b.Prepare a cost of goods sold schedule for the quarter.