2-36 Flow of Inventoriable Costs.

Renka’s Heaters selected data for Oc

presented here (in millions):
Direct materials inventory 10/1/2017 $ 105
Direct materials purchased 365
Direct materials used 385
Total manufacturing overhead costs 450
Variable manufacturing overhead costs 265
Total manufacturing costs incurred during October 2017 1,610
Work-in-process inventory 10/1/2017 230
Cost of goods manufactured 1,660
Finished-goods inventory 10/1/2017 130
Cost of goods sold 1,770
Required:
Calculate the following costs:
1. Direct materials inventory 10/31/2017
2. Fixed manufacturing overhead costs for October 2017
3. Direct manufacturing labor costs for October 2017
4. Work-in-process inventory 10/31/2017
5. Cost of finished goods available for sale in October 2017
6. Finished goods inventory 10/31/2017

COGS=COGS available-ending finished good=begin finished good+CO

ted data for October 2017 are

105
365
385
450
265
1610 dm+dl+moh
230
1660
130
1770

85 begin+purcha-used
185 total moh -variable moh
775 tt manu cost-dm used-tt moh
180 begin wip+tt manu cost - cog manufactured
1790 begin finished good + cog manu
20 cogs avalable-cogs

shed good+COGM-ending finished good

2-39 Income statement and schedule of cost of goods manufactured. The H
Corporation has the following account balances (in millions)

DM inventory Jan 1 2017 15

WIP JAN 1 10
Finished good inventory Jan 1 70
DM Inventory Dec 31 20
WIP Dec 31 5
Finished good inventory Dec 31 55

Purchases of direct materials

Direct manufacturing labor
Depreciation—plant and equipment

Plant supervisory salaries

Miscellaneous plant overhead

Revenues
Marketing, distribution, and customer-service costs

Plant supplies used

Plant utilities
Indirect manufacturing labor
Required:
Prepare an income statement and a supporting schedule of cost of goods m
year ended December 31, 2017. (For additional questions regarding these
problem.) COGM = Beginning WIP inventory + tota
Total manufacturing cost = direct materials + direct labor + man
https://www.chegg.com/homework-help/questions-and-answers/howell-corp
Income Statement
Revenue
 Less COGS
Gross profit

Operating
expense(research,
development,selling,
general administrative) Marketing, distribution, and customer-service costs
Operating income
manufactured. The Howell

Dm used/cost
Dm begin 15
Dm purchase 325
Dm ending 20
320
DL 100
MOH (indirect labor, indirect materials, rent and utility costs, depreciation, and financial cos
Depreciation—plant and equipment 80
325 Plant supervisory salaries 5
100 Miscellaneous plant overhead 35
80 Plant supplies used 10
Plant utilities 30
5 Indirect manufacturing labor 60
35 220
TT manufacturing cost(dm cost +dl +moh) 640
950 COGM 645
240
COGS=COGS available-ending finished good=begin finish
10 COGS 660
30
60

e of cost of goods manufactured for the

ns regarding these facts, see the next
inventory + total manufacturing costs - ending WIP inventory
rect labor + manufacturing overhead.
answers/howell-corporation-following-account-balances-millions-click-icon-view-ac

950
660
290

240
50
depreciation, and financial costs.)

d good=begin finished good+COGM-ending finished good

P inventory

s-click-icon-view-account-balances-re-q44300078
2-44 Missing records, computing inventory costs. Ron Howard recently too
controller of Johnson Brothers Manufacturing. Last month, the previous con
company with little notice and left the accounting records in disarray. Ron n
inventory balances to report first-quarter numbers.
For the previous month (March 2017) Ron was able to piece together the fo
information:
Direct materials purchased $120,000
Work-in-process inventory, 3/1/2017 $ 35,000
Direct materials inventory, 3/1/2017 $ 12,500
Finished-goods inventory, 3/1/2017 $160,000
Conversion costs $330,000
Total manufacturing costs added during the period
Cost of goods manufactured 4 times direct materials used
Gross margin as a percentage of revenues 20%
Revenues $518,750
Calculate the cost of:
Required:
1. Finished-goods inventory, 3/31/2017
2. Work-in-process inventory, 3/31/2017
3. Direct materials inventory, 3/31/2017

Direct materials used =Total Manufacturing costs added – Conversion cost

Dm used 90,000
COGM 360,000
3 DM end 42500 begin+purchase-used

Ending WIP=begin wip+tt manu cost -COGM

2.Ending WIP 95,000

COGS 415000
Ending finished good=begin finished good+COGM-COGS
1.Finished good inventory 105,000
 Howard recently took over as the
onth, the previous controller left the
ds in disarray. Ron needs the ending

piece together the following

120000
35000
12500
160000
330000
420000
4
20%
518750

ed – Conversion costs
2-45 Comprehensive problem on unit costs, product costs. Atlanta Offic
manufactures and sells metal shelving. It began operations on January
2017 are as follows (V stands for variable; F stands for fixed):
Direct materials used $140,000 V
Direct manufacturing labor costs 22,000 V
Plant energy costs 5,000 V
Indirect manufacturing labor costs 18,000 V
Indirect manufacturing labor costs 14,000 F
Other indirect manufacturing costs 8,000 V

Other indirect manufacturing costs 26,000 F

Marketing, distribution, and customer-service costs

Marketing, distribution, and customer-service costs

Administrative costs 54,000 F

variable manufacturing costs are variable with respect to units produce

distribution, and customer-service costs are variable with respect to un
Inventory data are as follows:

Beginning:
1-Jan-17

Direct materials 0
Work in process 0
Finished goods 0
Production in 2017 was 100,000 units. Two pounds of direct materials a
of finished product.
Revenues in 2017 were $473,200. The selling price per unit and the pu
of direct materials were stable throughout the year. The company’s end
goods is carried at the average unit manufacturing cost for 2017. Finish
December 31, 2017, was $20,970.
Required:
1. Calculate direct materials inventory, total cost, December 31, 2017.
2. Calculate finished-goods inventory, total units, December 31, 2017.
3. Calculate selling price in 2017.
4. Calculate operating income for 2017.
Comprehensive problem on unit costs, product costs. Atlanta Office Equipment
manufactures and sells metal shelving. It began operations on January 1, 2017. Cost
2017 are as follows (V stands for variable; F stands for fixed):
Direct materials used $140,000 V
Direct manufacturing labor costs 22,000 V
Plant energy costs 5,000 V
Indirect manufacturing labor costs 18,000 V
Indirect manufacturing labor costs 14,000 F
Other indirect manufacturing costs 8,000 V
Feb-46
Other indirect manufacturing costs 26,000 F
Marketing, distribution, and customer-
service costs
120,000 V
Marketing, distribution, and customer-
service costs
43,000 F
Administrative costs 54,000 F
Variable manufacturing costs are variable with respect to units produced. Variable ma
distribution, and customer-service costs are variable with respect to units sold.
uct costs. Atlanta Office Equipment
perations on January 1, 2017. Costs incurred for
ds for fixed):
140000
22000
5000
18000
14000
8000

26000 F
120000 V

43000 F
54000 F

pect to units produced. Variable marketing,

ble with respect to units sold.

Ending: December
31, 2017

2300
0
?
ds of direct materials are used to make one unit

ce per unit and the purchase price per pound

r. The company’s ending inventory of finished
g cost for 2017. Finished-goods inventory at

December 31, 2017.

December 31, 2017.

a Office Equipment
on January 1, 2017. Costs incurred for

its produced. Variable marketing,

spect to units sold.