Solutions 3

Solutions 3 - Quick Study 14-4 (5 minutes) Answer: 1. Quick...

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Quick Study 14-4 (5 minutes) Answer: 1. Quick Study 14-5 (5 minutes) 1. Indirect cost 2. Direct cost 3. Indirect cost 4. Indirect cost 5. Direct cost Quick Study 14-6 (5 minutes) Answer: 2. Quick Study 14-7 (5 minutes) Answer: 3. (a) (b) (c) — is the usual sequence, exceptions are possible. Quick Study 14-8 (10 minutes) Answer is 3. Cost of goods sold is computed as Beginning finished goods inventory . .............................................. $ 500 Cost of goods manufactured. ........................................................... 4,000 Goods available for sale . .................................................................. 4,500 Ending finished goods inventory. .................................................... 750 Cost of goods sold . ........................................................................... $3,750 Quick Study 14-9 (5 minutes) Production activities 2 Sales activities 3 Materials activities 1 Quick Study 14-10 (15 minutes)
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Briton Company Manufacturing Statement For Year Ended December 31, 2008 Direct materials . .................................................................................. $190,500 Direct labor . ........................................................................................ 63,150 Factory overhead costs. ..................................................................... 24,000 Total manufacturing costs . ............................................................... 277,650 Add goods in process, December 31, 2007. ..................................... 157,600 Total cost of goods in process . ......................................................... 435,250 Less goods in process, December 31, 2008. .................................... 142,750 Cost of goods manufactured . ............................................................ $292,500 Quick Study 14-12 (10 minutes) Finished goods inventory, December 31, 2007. .................. $ 345,000 Plus cost of goods manufactured. ....................................... 918,700 Cost of goods available for sale. .......................................... 1,263,700 Less finished goods inventory, December 31, 2008. .......... 283,600 Cost of goods sold. ................................................................ $ 980,100
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Exercise 14-6 (20 minutes) Product Cost Prime Conversion Period Cost Direct Cost Indirect Cost Direct materials used .................. X X State and federal income taxes ... X Payroll taxes for production supervisor ............................... X X Amortization of patents on factory machine ....................... X X Accident insurance on factory workers * .................................. X X X X Wages to assembly workers ** ...... X X X Factory utilities ........................... X X Small tools used .......................... X X Bad debts expense ...................... X Depreciation—Factory building ... X X Advertising .................................. X Office supplies used ................... X * There are certain costs that can be classified as direct for one company and indirect
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Solutions 3 - Quick Study 14-4 (5 minutes) Answer: 1. Quick...

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