Remember this….
Now on
Cost Accounting….
Example:Canseco
Company
No
|
Beginning
of
2011
|
End
of
2011
|
|
1
|
Direct Material Inventory
|
$ 22000
|
$26000
|
2
|
Work in process inventory
|
21000
|
20000
|
3
|
Finished goods inventory
|
18000
|
23000
|
4
|
Purchases of direct materials
|
75000
|
|
5
|
Direct manufacturing labor
|
25000
|
|
6
|
Transportation in
|
3000
|
|
7
|
Purchase discount
|
5%
|
|
8
|
Indirect manufacturing labor
|
15000
|
|
9
|
Plant insurance
|
9000
|
|
10
|
Depreciation-plant, building, equipment
|
11000
|
|
11
|
repairs and maintenance-plant
|
4000
|
|
12
|
Marketing, distribution and customer service costs
|
93000
|
|
13
|
General and administrative cost
|
29000
|
1. Revenue
for the 2011 were $300 million, prepare the income statement for 2011
2. Prepare a
schedule for the cost of goods manufactured for 2011
D'Answer
1.
Income statement
Conseco company
Income statement
For the year ended December 31,2011
Revenues $1000,000
Cost
of Goods Sold
Beginning Finished Goods Inventory $
18,000
Cost of Goods Manufactured (see the
schedule!!) 127,250
Cost Of Goods Available For Sale 145,250
Ending Finished Goods Inventory (23000)
Cost Of Goods Sold 122,250
Gross
Profit
Operating
Expense
Marketing, distribution and customer
service expense 93,000
General
and administrative cost 29,000
Total
Operating Expense (122,000)
Net Income $999.750
2.
Schedule of COGM
Canseco Company
Schedule of Cost of Goods manufactured
For the year ended December 31,2011
Direct Materials
Beginning Inventory $22,000
Purchases of direct materials
Purchase $75,000
Transportation in $3,000
Purchase discount ($3750)
Total 74,250
Cost of direct Materials available for use 88,250
Ending Inventory (26,000)
Direct Materials Used 62,250
Direct Manufacturing Labor 25,000
Manufacturing Overhead
Indirect
Manufacturing Labor 15,000
Plant Insurance 9,000
Depreciation-plant, building, equipment 11,000
Repairs and maintenance-plant 4,000
Total
Manufacturing Overhead Cost 39,000
Manufacturing Cost Incurred during 2011 126,250
Add: Beginning Work-in-process Inventory
21,000
Less: Ending Work in process Inventory (20,000)
Cost of Goods Manufactured $127,250
0 Comments