LATIHAN LOMBA (I)

Last month Venture, a computer game retailer, had total sales of $1,450,000, selling expenses of $210,000, and administrative expenses of $180,000. The company had net operating income of $40,000, purchased additional merchandise inventory for $950,000, and had ending merchandise inventory of $ 170,000.

Required: How much beginning inventory is reported on the income statement? (5 Minutes)

Hector Co. manufactures a variety of products in its factory. Data for the most recent month's operations appear below:

Beginning raw materials inventory...............$60,000

Purchases of raw materials...........................$690,000

Ending raw materials inventory....................$45,000

Cost of goods manufactured.........................$1,200,000

Manufacturing overhead..............................$370,000

Beginning work in process inventory………….$120,000

Ending work in process inventory.................$130,000

Required: How much direct labor is reported on the cost of goods manufactured? (5 Minutes)

Formerly, the company produced a smaller tote bag that was not very popular. Three hundred of these smaller bags are stored in one of the company's warehouses. The amount invested in these bags is called…………. (10 detik)

The company could have taken the funds that it has invested in production equipment and invested them in interest-bearing securities instead. The interest forgone on the securities is………………….. (10 detik)

Saphire Company produces motorcycles. During April, the company purchased 8,000 batteries at a cost of $10 per battery. Devon withdrew 7,600 batteries from the storeroom during the month. Of these, 100 were used to replace batteries in motorcycles used by the company's traveling sales staff. The remaining 7,500 batteries withdrawn from the storeroom were placed in motorcycles being produced by the company. Of the motorcycles in production during April, 90% were completed and transferred from work in process to finished goods. Of the motorcycles completed during the month, 30% were unsold at April 30. There were no inventories of any type on April 1.

Required: Determine the cost of batteries that would appear in each of the following accounts at April 30 for Raw Materials! (5 Minutes)

Saphire Company produces motorcycles. During April, the company purchased 8,000 batteries at a cost of $10 per battery. Devon withdrew 7,600 batteries from the storeroom during the month. Of these, 100 were used to replace batteries in motorcycles used by the company's traveling sales staff. The remaining 7,500 batteries withdrawn from the storeroom were placed in motorcycles being produced by the company. Of the motorcycles in production during April, 90% were completed and transferred from work in process to finished goods. Of the motorcycles completed during the month, 30% were unsold at April 30. There were no inventories of any type on April 1.

Required: Determine the cost of batteries that would appear in each of the following accounts at April 30 for Work in Process! (5 Minutes)

The costs that go directly into inventory accounts as they are incurred (first into Work in Process and then into Finished Goods), rather than going into expense accounts called is… (10 detik)

The potential benefit that is given up when one alternative is selected over another called… (10 detik)

Various cost and sales data for MAXIM Company for the just completed year appear in the worksheet below:

Finished goods Inventory, beginning                                     $20,000

Finished goods Inventory, ending                                           $40,000

Administrative expenses                                                          $110,000

Manufacturing overhead                                                         $105,000

Purchases of raw materials                                                      $125,000

Raw materials inventory, beginning                                       $9,000

Raw materials Inventory, ending                                            $6,000

Net operating income                                                               $40,000

Work in process inventory, beginning                                   $17,000

Work In process inventory, ending                                        $30,000

Sales                                                                                             $500,000

Selling expenses                                                                        S80,000

 

Of the $105,000 of manufacturing overhead, $15,000 is variable and $90,000 is fixed.

 

Required: How much direct labor is reported on the cost of goods manufactured? (5 Minutes)

Various cost and sales data for Cornell Company for the just completed year appear in the worksheet below:

Finished goods Inventory, beginning                                     $20,000

Finished goods Inventory, ending                                           $40,000

Administrative expenses                                                          $110,000

Manufacturing overhead                                                         $105,000

Purchases of raw materials                                                      $125,000

Raw materials inventory, beginning                                       $9,000

Raw materials Inventory, ending                                            $6,000

Net operating income                                                               $40,000

Work in process inventory, beginning                                   $17,000

Work In process inventory, ending                                        $30,000

Sales                                                                                             $500,000

Selling expenses                                                                        S80,000

 

Of the $105,000 of manufacturing overhead, $15,000 is variable and $90,000 is fixed.

 

Required:

Prepare a schedule of cost of goods manufactured. (5 Minutes)