# cost accounting

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cost accounting
Problem 2-43 (35 minutes)
1.
San Fernando Fashions Company
Schedule of Cost of Goods Manufactured
For the Year Ended December 31, 20x2

Direct material:

Raw-material inventory, January 1
\$ 40,000

Add: Purchases of raw material 180,000

Raw material available for use
\$220,000

Deduct: Raw-material inventory, December 31 25,000

Raw material used

\$195,000

Direct labor

200,000

Indirect material
\$ 10,000

Indirect labor
15,000

Utilities: plant
40,000

Depreciation: plant and equipment
60,000

Other 80,000

205,000

Total manufacturing costs

\$600,000

40,000

Subtotal

\$640,000

Deduct: Work-in-process inventory, December 31

30,000

Cost of goods manufactured

\$610,000

2.
San Fernando Fashions Company
Schedule of Cost of Goods Sold
For the Year Ended December 31, 20x2

Finished goods inventory, January 1
\$ 20,000

Add: Cost of goods manufactured 610,000

Cost of goods available for sale
\$630,000

Deduct: Finished-goods inventory, December 31 50,000

Cost of goods sold
\$580,000

Problem 2-43 (Continued)
3.
San Fernando Fashions Company
Income Statement
For the Year Ended December 31, 20x2

Sales revenue
\$950,000

Less: Cost of goods sold 580,000

Gross margin
\$370,000

Selling and administrative expenses 150,000 Income before taxes
\$220,000

Income tax expense 90,000

Net income
\$130,000

4. In the electronic version of the solutions manual, press the CTRL key and click on the following link: Build a Spreadsheet 02-43.xls

Problem 2-45 (20 minutes)

1. a, d, g, i
2. a, d, g, j
3. b, f
4. b, d, g, k
5. a, d, g, k
6. a, d, g, j
7. b, c, f
8. b,

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