Cengage_Now_Assignment_5_Solutions

Cengage_Now_Assignment_5_Solutions - (30,000 ) Cost of...

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Cengage Now Assignment 5 Solutions 1. (Problem 2-11) A. The cost of goods manufactured is $265,000 as shown below: Beginning inventory of Work-in-process $ 20,000 Plus: Raw materials used in production 97,000 1 Plus: Direct labor 50,000 Plus: Manufacturing overhead 127,000 2 Less: Ending Work-in-process (29,000) Cost of goods manufactured $265,000 1 Raw Materials Used in Production Beginning inventory of raw materials $ 15,000 Plus: Raw Material purchased 100,000 Raw Material Available for use 115,000 Less: Ending inventory of raw materials 18,000 Raw Materials Used in Production $ 97,000 2 Manufacturing Overhead Indirect labor $ 35,000 Equipment maintenance 9,000 Factory insurance 11,000 Factory rent 40,000 Factory depreciation 20,000 Factory supplies 12,000 Total manufacturing overhead $ 127,000 B. The cost of goods sold is equal to $270,000 as calculated below: Cost of goods sold equals: Beginning Finished Goods Inventory $ 35,000 Plus: Cost of goods manufactured 265,000 Less: Ending Finished Goods Inventory
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Unformatted text preview: (30,000 ) Cost of goods sold $270,000 C. Gross Margin is equal to $80,000 and Operating Income is equal to $37,000 as calculated below. Net Revenue $350,000- Cost of Goods Sold 270,000 Gross Margin 80,000- Advertising expenses 18,000- Selling and Administrative expenses 25,000 Total S, G and A expenses 43,000 Operating Income 37,000 2. (Exercise 2-5) Beginning Raw Materials Inventory $20,000 Plus: Raw Material Purchased +140,000 Less: Ending Raw Materials Inventory- 37,000 Raw Materials Used in Production $123,000 3. (MC 2-11) Answer: C 4. (MC 2-12) Answer: A 5. (MC 2-16) Answer: D Beginning inventory of finished goods $ 41,000 Plus: Cost of goods manufactured 196,000 Cost of goods available for sale 237,000 Less: Ending inventory of finished goods (37,000) Cost of goods sold $200,000 6. (MC 2-17) Answer: B 7. (MC 2-1) Answer: C 8. (MC 2-3) Answer: C 9. (MC 2-5) Answer: D 10. (MC 2-8) Answer: C...
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Cengage_Now_Assignment_5_Solutions - (30,000 ) Cost of...

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