Financial Accounting Exam
Name SOLUTIONS
ACCT 1210DL
Exam #1-Chapters 1, 2 & 4
Spring 2010
Ethical Statement – I ____ _________________ hereby (signature) attest that I completed this exam on my own with no assistance from others. If you e-mail this, you MUST include this statement in the body of your e-mail that has the exam attached.
1.
Presented below is a list of costs and expenses incurred in the factory by Nu-Way Corporation, a manufacturer of recreational vehicles. Complete the following matrix by placing an X mark under the appropriate heading(s) for each cost item.
Cost item Direct Materials Direct Labor Manufacturing Overhead Period Costs
Property taxes on the factory land X
Advertising X
Indirect factory labor X
Metal used …show more content…
From their accounting records, Lane prepares the following schedule and financial statements on a yearly basis: (a) Cost of goods manufactured schedule. (b) Income statement. (c) Balance sheet.
For each of the items, complete the following matrix by placing an X mark under the appropriate schedule or financial statement in which the item will appear. (An item may appear in more than one financial statement).
Item Cost of Goods Manufactured Income Statement Balance Sheet None of These (indicate where it would be found)
Direct labor X
Office supplies used X
Depreciation on printing machines X
Finished goods inventory, 12/31 X X
Work in process, 12/31 X X
Raw materials inventory, 1/1 X
Cost of goods manufactured X X
Work in process, 1/1 X
Office supplies inventory, 12/31 X
Indirect labor X
Heat and electricity for the print shop …show more content…
for use $272,000 (from (b)) less $246,000 raw materials purchases = $26,000.
b) Direct materials used $235,000 less raw mat. Inv. 12/31 $37,000 = $272,000
c) Total manufacturing costs $412,000 (from(e)) less direct materials $235,000 less total overhead $96,000 (from(d)) = $81,000
d) Sum of indirect labor, factory depreciation and utilities: $19,000+$38,000+$39,000=$96,000
e) Total cost of WIP $732,000 (from(f)) less WIP 1/1 $320,000 = $412,000.
f) COGM $440,000 plus WIP 12/31 $292,000 =$732,000 g) 4.
Watson Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of
ACCT 1210DL
Exam #1-Chapters 1, 2 & 4
Spring 2010
Ethical Statement – I ____ _________________ hereby (signature) attest that I completed this exam on my own with no assistance from others. If you e-mail this, you MUST include this statement in the body of your e-mail that has the exam attached.
1.
Presented below is a list of costs and expenses incurred in the factory by Nu-Way Corporation, a manufacturer of recreational vehicles. Complete the following matrix by placing an X mark under the appropriate heading(s) for each cost item.
Cost item Direct Materials Direct Labor Manufacturing Overhead Period Costs
Property taxes on the factory land X
Advertising X
Indirect factory labor X
Metal used …show more content…
From their accounting records, Lane prepares the following schedule and financial statements on a yearly basis: (a) Cost of goods manufactured schedule. (b) Income statement. (c) Balance sheet.
For each of the items, complete the following matrix by placing an X mark under the appropriate schedule or financial statement in which the item will appear. (An item may appear in more than one financial statement).
Item Cost of Goods Manufactured Income Statement Balance Sheet None of These (indicate where it would be found)
Direct labor X
Office supplies used X
Depreciation on printing machines X
Finished goods inventory, 12/31 X X
Work in process, 12/31 X X
Raw materials inventory, 1/1 X
Cost of goods manufactured X X
Work in process, 1/1 X
Office supplies inventory, 12/31 X
Indirect labor X
Heat and electricity for the print shop …show more content…
for use $272,000 (from (b)) less $246,000 raw materials purchases = $26,000.
b) Direct materials used $235,000 less raw mat. Inv. 12/31 $37,000 = $272,000
c) Total manufacturing costs $412,000 (from(e)) less direct materials $235,000 less total overhead $96,000 (from(d)) = $81,000
d) Sum of indirect labor, factory depreciation and utilities: $19,000+$38,000+$39,000=$96,000
e) Total cost of WIP $732,000 (from(f)) less WIP 1/1 $320,000 = $412,000.
f) COGM $440,000 plus WIP 12/31 $292,000 =$732,000 g) 4.
Watson Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of