Professional Documents
Culture Documents
Problem 1-16A
1.
Swift Company
Schedule of Cost of Goods Manufactured
For the Month Ended August 31
Direct materials:
Raw materials inventory, August 1.........
$ 8,00
0
Add: Purchases of raw materials............ 165,00
0
Raw materials available for use............. 173,000
Deduct: Raw materials inventory,
13,00
August 31............................................
0
Raw materials used in production..........
$160,000
Direct labor..............................................
70,000
Manufacturing overhead..........................
85,000
Total manufacturing costs........................
315,000
Add: Work in process inventory, August 1
16,000
331,000
Deduct: Work in process inventory,
21,000
August 31..............................................
Cost of goods manufactured.....................
$310,000
2.
Swift Company
Income Statement
For the Month Ended August 31
Sales........................................................
Cost of goods sold:
Finished goods inventory, August 1........
$450,00
0
$
40,000
Add: Cost of goods manufactured..........
310,00
0
Goods available for sale......................... 350,000
Deduct: Finished goods inventory,
60,00 290,000
August 31............................................
0
1-1
Gross margin............................................
Selling and administrative expenses........
Net operating income...............................
160,000
142,000
$
18,000
1-3
Problem 1-19A
1.
Cost Item
Factory labor, direct..............
Advertising............................
Factory supervision...............
Property taxes, factory
building...............................
Sales commissions................
Insurance, factory.................
Depreciation, administrative
office equipment.................
Lease cost, factory
equipment..........................
Indirect materials, factory.....
Depreciation, factory
building...............................
Administrative office supplies
Administrative office salaries
Direct materials used............
Utilities, factory.....................
Cost Behavior
Variabl
e
Fixed
$118,00
0
$50,000
80,000
3,500
3,500
1-4
80,000
2,500
4,000
12,000
12,000
6,000
10,000
10,000
60,000
94,000
20,00
0
$50,000
40,000
4,000
3,000
Cost
Product Cost
Indirec
Direct
t
$118,00
0
$40,00
0
2,500
6,000
Selling or
Administrati
ve
3,000
60,000
94,000
20,00
0
Total costs.............................
$321,00
0
$182,00
0
$197,000
$212,00
0
$94,00
0
Direct.............................................
Indirect..........................................
Total..............................................
$306,000 2,000 sets = $153 per
set
$212,00
0
94,00
0
$306,00
0