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Records of Larsen Manufacturing for the Year

See the attachments.

PROBLEM 3
The following data have been taken from the records of Larsen Manufacturing for the year ended 12/31/2011.

Sales $860,000 WORD BANK
Purchases of raw materials 150,000 12/31/2011
Direct labor 110,000 Cost of goods available for sale
Manufacturing overhead 210,000 Cost of goods manufactured
Selling expenses 130,000 Cost of goods sold
Administrative expenses 180,000 direct material used
Raw material inventory, beginning 40,000 For the year ended 12/31/2011
Raw material inventory, ending 80,000 Larsen Manufacturing
Work in process, beginning 20,000 Raw material available
Work in process, ending 80,000 Schedule of Cost of goods manufactured
Finished goods, beginning 80,000 Total manufacturing costs
Finished goods, ending 150,000

a. Prepare a Schedule of Cost of Goods Manufactured in good form. Use the titles above as your word bank.
in addition to the word bank below.
b. Prepare a schedule of Cost of Goods sold. 40
150
1 190
2 80
3 110
110
Direct material 210
4 5 430
Purchases of raw materials 6
7 8
9 10
11 12
Direct labor 13
14 15
16 17
Work in process, beginning 18
19 20
21 22

23
Schedule of Cost of Goods Sold
24

25 $80,000
26 27
28 29
30 31
32 33
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4) Chapter 3 problem - cost flow in a manufacturer

Hirpara, Inc. has provided the following cost information:
NUMBERS
Raw materials inventory, beginning $12,000 1
Work in process inventory, beginning 32,000 2
Finished goods inventory, beginning 41,000 3

Transactions:
a) Raw materials purchases $64,000 4
b) Raw material used in production, all direct 69,000 5,6
c) Direct labor costs 83,000 7
d) Manufacturing ovrehead costs incurred, actual 62,000 8
e) Manufacturing overhead applied 63,000 9,10
f) Cost of goods manufactured and transferred to finished goods 208,000 11,12
g)Over or underapplied overhead closed out to Cost of goods sold ???? 13,14
h) Cost of goods sold 234,000 15,16

ENDING INVENTORIES
Required: Prepare T-accounts for Raw Materials, Work in Process, Finished Goods, Manufacturing Overhead 17,18,19 AND 20
and Cost of Goods sold. Enter beginning balances. Enter transactions in the appropriate
T-accounts, Finally, close out manufacturing overhead to Cost of Goods sold.

HINT: ENTER THE AMOUNTS IN THE ORDER IN WHICH THEY APPEAR ABOVE.

Raw materials Work in Process Finished Goods
1 2 3
4
5 6
7
10
11 12

17
18 19

Manufacturing overhead Cost of goods sold
8 14
9 16

13

20

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Burningham Corporation uses the weighted-average method in its process costing. The following data pertain
to its Material Preparation Department in the month of June.

Units in process June 1, 70% complete as to materials
and 50% complete as to conversion 700

Units started in June 9600

Units in process June 30, 60% complete as to materials
and 55% complete as to conversion 1800

Required: Calculate the equivalent units for the month of June.

MATERIALS CONVERSION
Units transferred out 1 2

Units in ending work in process 3 4

Totals 5 6

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Chapter 4 problem - process costing

Twitty, Inc. uses the weighted-average method in accounting for costs in its Assembly Department.
Following are the costs for August:

Materials Conversion
Cost per equivalent unit $31.00 $19.20
Eqvuivalent units in ending work in process 1,470 525

During August, 6800 units were completed and transferred out of the Assembly Department.

Required: Compute the cost in ending inventory and the costs transferred out of the Aseembly Department
using the weighted-average method.

MATERIALS CONVERSION TOTAL
ENDING WORK IN PROCESS 1 2 3
COSTS TRANSFERRED OUT 4 5 6.

Attachments

Solution Preview

Please see the attachments. The four files are in a single zip file.

Problem 1 - Schedule of cost of goods manufactured and sold
Cost of goods manufactured = Beginning WIP + total manufacturing costs = total cost of WIP. From this we subtract the ending WIP and so what is left is cost of goods manufactured.
First we calculate the ...

Solution Summary

The solution helps prepare a schedule of cost of goods sold.

$2.19