Respuesta :
Answer:
1. ON Company
a. $30,800
b. $854,000
c. $800,800
d. $827,400
e. $299,600
f. $182,000
Off Company
a. $581,560
b. $685,720
c. $195,300
d. $256,060
e. $399,280
f. $234,360
2.1 On Company
Statement of Cost of Goods Manufactured
For the month Ended December 31, 2016
Raw Material
Raw material, beginning $65,800
Add:Purchases 282,800
Raw materials available 348,600
Less: Raw material, end 30,800
Cost of raw material used 317,800
Add: Direct labor 387,800
Prime Cost 705,600
Add: Factory overhead 148,400
Manufacturing cost 854,000
Add: Work in process, beginning 119,000
Less: Work in process, Ending 172,200
Cost of Goods Manufactured $800,800
2.2 Off Company
Statement of Cost of Goods Manufactured
For the month Ended December 31, 2016
Raw Material
Raw material, beginning $195,300
Add:Purchases 581,560
Raw materials available 776,860
Less: Raw material, end 91,140
Cost of raw material used 685,720
Add: Direct labor 577,220
Prime Cost 1,262,940
Add: Factory overhead 256,060
Manufacturing cost 1,519,000
Add: Work in process, beginning 208,320
Less: Work in process, Ending 195,300
Cost of Goods Manufactured $1,532,020
3.1 On Company
Income Statement
For the month Ended December 31, 2016
Sales $1,127,000
Less: Cost of goods sold 827,400
Gross profit 299,600
Less: Operating expenses 117,600
Net Income $182,000
3.2 Off Company
Income Statement
For the month Ended December 31, 2016
Sales $1,944,320
Less: Cost of goods sold 1,545,040
Gross profit 399,280
Less: Operating expenses 234,360
Net Income 164,920
Explanation:
a1. To get the raw materials end balance, we have to add the raw materials beginning plus the purchases then deduct it from raw materials used in the given data.
a & b (Off Company). To compute the Raw materials used and purchases, we will begin with the given manufacturing cost amount, then deduct from it the factory overhead and direct labor to get the cost of materials used for the period. Then from it we add the raw material ending balance and add back the raw materials beginning to get the purchases for the month.
b. (On Company) Manufacturing cost is computed by adding cost of materials used and direct labor and factory overhead.
c. (On Company) To get the cost of goods sold, we add work in process beginning balance to the manufacturing cost we computed earlier and then deduct work in process ending balance.
c. (Off Company) to get the work in process end, we begin with the manufacturing cost and add work in process beginning then less the cost of goods manufactured.
d. (On Company) To get the cost of goods sold, we add cost of goods manufactured and finished goods beginning then deduct finished goods end.
d. (Off Company) To compute the finished goods end, we add cost of goods manufacture and finished goods beginning balance then deduct cost of goods sold from it.
e. (On Company) Gross profit is computed by deducting cost of goods sold $827,400 from the sales of $1,127,000
e. (Off Company) Gross profit is computed by deducting cost of goods sold $1,545,040 from the sales of $1,944,320
f. (On Company) Net income is computed by deducting Operating expense of $117,600 from Gross Profit $299,600
f. (Off Company) To compute operating expense we deduct Net income amount o0f $164,920 from the gross profit of $399,280
On Company
Statement of Cost of Goods Manufactured
For the month Ended December 31, 2016
Raw Material
Raw material, beginning $65,800
Add:Purchases 282,800
Raw materials available 348,600
Less: Raw material, end 30,800
Cost of raw material used 317,800
Add: Direct labor 387,800
Prime Cost 705,600
Add: Factory overhead 148,400
Manufacturing cost 854,000
Add: Work in process, beginning 119,000
Less: Work in process, Ending 172,200
Cost of Goods Manufactured $800,800
Statement of Cost of Goods Sold
Finished goods, beginning $224,000
Add: Cost of Goods Manufactured 800,800
Cost of goods available for sale 1,024,800
Less: Finished goods, ending 197,400
Cost of goods sold $827,400
2.2 Off Company
Statement of Cost of Goods Manufactured
For the month Ended December 31, 2016
Raw Material
Raw material, beginning $195,300
Add:Purchases 581,560
Raw materials available 776,860
Less: Raw material, end 91,140
Cost of raw material used 685,720
Add: Direct labor 577,220
Prime Cost 1,262,940
Add: Factory overhead 256,060
Manufacturing cost 1,519,000
Add: Work in process, beginning 208,320
Less: Work in process, Ending 195,300
Cost of Goods Manufactured $1,532,020
Statement of Cost of Goods Sold
Finished goods, beginning $269,080
Add: Cost of Goods Manufactured 1,532,020
Cost of goods available for sale 1,801,100
Less: Finished goods, ending 256,060
Cost of goods sold $1,545,040
