COMPUTE THE COST OF GOODS SOLDHOW TO ARRIVE AT THE NET INCOME IF A CORPORATION IS A MANUFACTURING CONCERN? The details of this account are shown below:Direct Materials Inventory BeginningAssembly Parts Inventory BeginningTotal Raw Materials BeginningAdd (Deduct):Direct Materials PurchasesAssembly Parts PurchasesTotal PurchasesReturns and AllowancesInventory Writedown** ****Total Materials and Parts Available for useDirect Materials Inventory EndingAssembly Parts Inventory EndingTotal Materials UsedDirect LaborFactory OverheadTotal Manufacturing CostWork In Process BeginningTotal Goods Placed in ProcessWork in Process EndingCost of Goods ManufacturedFinished Goods BeginningTotal Goods Available for SaleFinished Goods Inventory, EndTotal Cost of Goods Sold20211,051,3388,31927,346,98013,537,40298,568125,7738,649,11088,383,130296,805815,238469,335546,61420201,571,279992,5706,454,08616,886,3891,051,3388,3195,541,95530,807,40744,000296,805905,332469,355

The cost of goods sold includes all the direct expenses or costs incurred in making of a product. It…

Answered: COMPUTE THE COST OF GOODS SOLD HOW TO…

Business

Accounting

COMPUTE THE COST OF GOODS SOLD HOW TO ARRIVE AT THE NET INCOME IF A CORPORATION IS A MANUFACTURING CONCERN?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 3E: Cost of materials issuances under the FIFO method An incomplete subsidiary ledger of materials...

See similar textbooks

Related questions

Q: Use the following selected account balances of Delray Manufacturing for the year ended December 31.…

A: Cost of Goods Manufactured The cost incurred to produce the products prior to sale in the market is…

Q: Assume the rate per hour is $15 and the cost per unit is $16,000 while the units produced is 8,000…

A: The piece rate with a guaranteed day rate of remuneration is calculated by taking the total cost of…

Q: Shep Company’s records show the following information for the current year: Beginning of year…

A: Answer Formula = Total assets = total liabilities + Total…

Q: Slewah Corporation has two main production departments, Cameras and Batteries. The company also has…

A: Step down method very commonly referred to as sequential method that allocates the cost-of-service…

Q: cost

A: The decision to accept or reject a special order depends on various factors. Fixed expenses are…

Q: The constraint at Pickrel Corporation is time on a particular machine. The company makes three…

A: The profitability of a product can be assessed on the basis of the contribution margin. The product…

Q: common stock issued and outstanding (EC has never issued preferred stock). The shareholders are also…

A: Shareholder - A person or entity that the corporation registers as the legitimate owner of shares of…

Q: Illustration I (Comparative income statement) The following are the income statements of Jeevan…

A: COMPARATIVE INCOME STATEMENT Comparative Income Statement is an Income Statement of Multi Period in…

Q: amount of the canceled debt

A: If your debt gets discharged or forgiven for less than the amount you owe, your debt is known as…

Q: Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its…

A: Bonds are one of the sources of raising funds from the market by issuing security and offering a…

Q: QUESTION 4 Ms. Shanti receives a salary of RM 10,000 per month as a communication executive with RK…

A: Gross income for an individual is the sum of all sources of income, including wages and salaries,…

Q: Corona Coffee Company issued 1,000 shares of no-par common stock for $11,000. Which of the following…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: When Mary Potts arrived at her store on the morning of January 29, she found empty shelves and…

A: As per the gross profit method, the ending inventory can be calculated by deducting the cost of…

Q: What are the costs of implementing a quality initiative, and what are the costs of not implementing…

A: The costs of implementing a quality initiative can vary depending on the type of initiative and the…

Q: You are the plant accountant for a company that makes a popular brand of basketball shoes.…

A: Break even point is the point of sale where no profit no loss situation. At this point profit would…

Q: The following are the balances taken from the books of Muhammad Zain Ammar Safdar & Co. on May 31st,…

A: The profit and loss (P&L) account summarises a business' trading transactions - income, sales…

Q: Prepare the consolidated statement of profit or loss and movements on retained earnings

A: The consolidated statement of the profit and loss account is the statement which is only and only…

Q: The Velvet partnership has the following capital balances at the beginning of the current year along…

A: Partners' Capital means the equity in the net assets of Unincorporated Ventures of all the partners…

Q: Ollie Company experienced the following events during its first-year operations: 1. Acquired $72,000…

A: An income statement summarises a company's sales, costs, and profitability over time. It is…

Q: Required information [The following information applies to the questions displayed below.] Martinez…

A: Variable Cost :— It is the cost that changes with change in cost driver. Variable cost per unit is…

Q: cestion 23 A company has purchased a car, to be provided to an employee as a company car. The list…

A: The benefit-cost ratio indicates the relationship between the cost and benefit of an investment…

Q: 1. Which of the following is true about the straight-line method? A. Complex method B. Cost of…

A: DEPRECIATION EXPENSE Depreciation means gradual decrease in the value of an asset due to normal…

Q: Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an…

A: The tax liability depends upon the taxable income and the filing status of the taxpayer, The…

Q: Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers…

A: Cost can be defined as the sum paid for something, or its equivalent. Cost reduction is more than…

Q: Exercise 1-8 (Static) Applying measurement principle and revenue recognition principle LO C2 a.…

A: Answer In financial statements the amount which had actually taken into consideration is to be…

Q: GUWARA CORPORATION Income Statement For the Year Ended December 31, 2024 Service Revenue Expenses:…

A: INCOME STATEMENT Income Statement is one of the Important Financial Statement of the Company. Income…

Q: . Journalize the entry to record the issuance of bonds on April 1. If an amount box does not require…

A: a) Premium on Bonds Payable = Cash Received - Bonds Face Value =8,316,508 - 8,000,000 =316,508…

Q: Quatro Co. owns 95% of the shares of Cinco Co. (both CCPCs). Both companies have assets that have…

A: Business reorganisation means changes in the constitution of the business. Owners may be changed or…

Q: Explain the drawing 21% Financails 50% Sales Expenes

A: Pie chart refers to the diagram which comprises of the circle and it is divided into the parts in…

Q: The decision to audit an entire population is usually dependent upon management's express written…

A: Audit sampling is the use of an audit procedure on a selection of the items within an account…

Q: A company issues a prospectus for the issue of 5000x $100, 10-year debentures, which is fully…

A: Meaning of debentures It is a long term debt which is issued by a company against which a fixed rate…

Q: Select all of the following that managers can use to evaluate capital invesments. (Select all that…

A: Capital budgeting is the process a business undertakes to evaluate potential major projects or…

Q: The small firm wants a 1-year fixed-rate loan. A bank's base rate is 6.14 percent. Adjustment for…

A: Bank loan - A loan occurs when one or more people, organizations, or other entities lend money to…

Q: Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in…

A: In order to decide whether Further processing is beneficial or not we should have to consider…

Q: 13 The cash balance of AA Company had the following information: Descriptions November December…

A: An entity's bank account and its financial records are compared using a bank reconciliation…

Q: a privately start-up ventory management to rm plans to sell its shares to the public within next 18…

A: Free cash flow is the cash available after deduction of capital expenses and net working capital…

Q: Required Calculate Airspace's liquidity and efficiency ratios for 2023 and 2022. (Round she final…

A: Efficiency ratios established the relationship between assets and sales in different ways it uses…

Q: What is the value of common-sizing analysis? Why would a company do such an analysis on another…

A: Lets understand the basics. There are two type of analysis is generally made by the entities which…

Q: Describe the weaknesses and strenghts of international ethical standards. Explain and compare the…

A: International ethics refers to the theory which includes the concerns related to the scope and…

Q: Net income of a corporation is closed each year to Cash. Dividends. Paid-in Capital in Excess of…

A: The closing entries are prepared to close the temporary accounts of the business. The temporary…

Q: How often do you receive statements from the bank? every day every month every two weeks every week

A: Since you have posted two questions, we will do the first one for you. Please post the other…

Q: Organic Juices, Inc. acquires Healthy Snax Corporation for $80 million in cash, in a merger. Healthy…

A: Journal entry: In the books of Organic Juices books: Account title Debit (Million) Credit…

Q: The following are the nd 1999. Prepare common-size income statement for the two years. Trading and…

A: A common size statement is one the analysis on which each item of the income statement is to be…

Q: The management of Furrow Corporation is considering dropping product L07E. Data from the company's…

A: Unavoidable Fixed costs of manufacturing that cannot be avoidable = Total manufacturing fixed costs…

Q: Entries for equity investments: 20%-50% ownership At a total cost of $1,162,500, Herrera Corporation…

A: Percentage ownership 25% =75000/300000 a 1 Investment in Tran Corp.…

Q: A company issued shareholders with a 1 for 5 bonus issue out of retained profits on its issued…

A: Bonus share are those shares which are distributed or given by the company to its existing…

Q: How much would you be prepared to pay for a $1,000 bond which comes due in 8 years and pays $100…

A: Bonds are long term sources of finance for companies and on bond there are annual interest payments…

Q: On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $70,320.…

A: Calculation of trade secret. Excel Formulas that are used for calculations:-

Q: On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for…

A: A capitalized cost is an expense added to the cost basis of a fixed asset on a company's balance…

Q: (iii) If we arrive at expiry in June and you are proved correct with Apple shares selling for $120,…

A: The option which has been in the question is the put option. The strike price = $210 per share…

Question

COMPUTE THE COST OF GOODS SOLD
HOW TO ARRIVE AT THE NET INCOME IF A CORPORATION IS A MANUFACTURING CONCERN?

The details of this account are shown below:
Direct Materials Inventory Beginning
Assembly Parts Inventory Beginning
Total Raw Materials Beginning
Add (Deduct):
Direct Materials Purchases
Assembly Parts Purchases
Total Purchases
Returns and Allowances
Inventory Writedown
** ****
Total Materials and Parts Available for use
Direct Materials Inventory Ending
Assembly Parts Inventory Ending
Total Materials Used
Direct Labor
Factory Overhead
Total Manufacturing Cost
Work In Process Beginning
Total Goods Placed in Process
Work in Process Ending
Cost of Goods Manufactured
Finished Goods Beginning
Total Goods Available for Sale
Finished Goods Inventory, End
Total Cost of Goods Sold
2021
1,051,338
8,319
27,346,980
13,537,402
98,568
125,773
8,649,110
88,383,130
296,805
815,238
469,335
546,614
2020
1,571,279
992,570
6,454,086
16,886,389
1,051,338
8,319
5,541,955
30,807,407
44,000
296,805
905,332
469,355

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

From beginning to end, place these items in the order of the flow of goods. A. cost of goods sold B. raw materials inventory C. finished goods inventory D. work in process inventory
Cost of materials issuances under the FIFO method An incomplete subsidiary ledger of materials inventory for May is as follows: A. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO. B. Determine the materials inventory balance at the end of May. C. Journalize the summary entry to transfer materials to work in process. D. Explain how the materials ledger might be used as an aid in maintaining inventory quantities on hand.
For each cost pool, identify an appropriate cost driver. A. order department B. accounts receivable processing C. catering D. raw material inventory
Materials are added at the beginning of a production process, and ending work in process inventory is 30% complete with respect to conversion costs. Use the information provided to complete a production cost report using the weighted-average method.
The following data show the units in beginning work in process inventory, the number of units started, the number of units transferred, and the percent completion of the ending work in process for conversion. Given that materials are added at the beginning of the process, what are the equivalent units for material and conversion costs for each quarter using the weighted-average method? Assume that the quarters are independent.
In a job order cost system, raw materials purchased are debited to which account? A. raw materials inventory B. work in process inventory C. finished goods inventory D. cost of goods sold
n the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the period. Compute the cost of direct labor used for the period. In the Work in Process Inventory T-account, insert amounts for beginning and ending balances along with direct materials used (from part 1), direct labor used (from part 2), and applied overhead. Solve for cost of goods manufactured in the period. In the Finished Goods Inventory T-account, insert amounts for beginning and ending balances along with cost of goods manufactured (from part 3). Solve for cost of goods sold in the period (do not consider any under- or overapplied overhead). In the Factory Overhead T-account, insert amounts for indirect materials used, indirect labor used, other overhead costs, and applied overhead. Solve for underapplied or overapplied overhead.
Cost of Goods Sold that are NOT part of Goods Available for Sale are included in A. Work-in-Process Inventory beginning balance B. Work-in Process Inventory ending balance C. Direct Labor D. Finished Goods Inventory ending balance Given the following data, what is the cost of goods manufactured? Beginning Raw Materials Inventory Ending Raw Materials Inventory Beginning Work-in-Process Inventory Ending Work-in-Process Inventory Beginning Finished Goods Inventory Ending Finished Goods Inventory Manufacturing Overhead Direct Labor Raw Materials used in production A. $125,000 B. $141,000 12:03 C. $146,000 D. $151,000 $6,000 9,000 12,000 17,000 3,000 5,000 21,000 30,000 95,000 12:03
Complete the information in the cost computations shown here: Raw materials Beginning inventory Purchases Materials available for use Ending inventory Materials used in production Work in process inventory Beginning inventory Materials used in production Direct labor Overhead applied Manufacturing costs incurred Ending inventory Cost of goods manufactured Finished goods inventory Beginning inventory Cost of goods manufactured Goods available for sale Ending inventory Cost of goods sold $341 1,533 323 $931 1,536 $22,450 936 $25,008 $21,792
Under a standard cost system, when recording the use of direct materials in the production process, the debit to Work-in-Process Inventory is A. actual quantity times actual cost per unit of direct materials B. actual quantity times standard cost per unit of direct materials C. standard quantity for actual production times actual cost per unit of direct materials D. standard quantity for actual production times standard cost per unit of direct materials
The categories of manufacturing costs comprising the total cost of work in process inventory are which of the following? Group of answer choices Selling expenses Direct costs General and administrative expenses Direct labor, direct materials, and manufacturing overhead
Assess raw materials inventory management using raw materials inventory turnover and days’ sales in raw materials inventory.