View the step-by-step solution to:


Darcy Hill is the controller for Spry Manufacturing Ltd. in London, Ontario.

Darcy just finished a phone call with the chief financial officer (CFO) of the company, who is attending a meeting with executive management at a Toronto convention center. He asked that Randy plan to come to Toronto that evening and attend a meeting early the following morning. The CFO also asked him to bring with him all of the financial data required to generate T-accounts (for raw materials inventory, factory overhead, work-in-process inventory, and finished goods inventory), a schedule of cost of goods manufactured, a statement of cost of goods sold, and an income statement for the just-completed month of January. This information would be needed in the meeting. Darcy quickly ran a report with all of the information he felt was necessary to create the reports his boss had requested. He put the financial information in his briefcase and left for Toronto immediately to avoid the poor weather that was on its way. Darcy was sure he would have lots of time in his hotel room in the evening to generate the required reports. However, when he arrived in his hotel room and pulled out the information, he was alarmed to find that some important pieces of information were missing. Darcy made a list of all the data he had plus what he needed. For those categories with missing data, the number field has a question mark. The following is the list that Darcy

Balances and Transactions

Direct materials used


Direct labour


Factory rent


Repairs and maintenance - production


Salary - production manager's salary


Indirect materials used


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




Sales returns and allowances


Net sales


Cost of goods manufactured


Goods available for sale


Cost of goods sold


Gross margin


Indirect labour


Depreciation - production equipment


Selling expenses


Administrative expenses


Raw materials purchased


Estimated annual overhead


Estimated annual direct labour


Predetermined overhead rate


Spry Manufacturing uses normal costing and applies overhead on the basis of direct labour dollars.


Prepare the data required by the CFO and calculate the missing data while preparing the T-accounts and the required schedule and statements.

Top Answer

View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question