PROBLEM 1-20

1 JGG Manufacturing Company

Manufacturing cost

Direct Materials 47,000

Direct Labor 28,000
Factory Overhead:
Depreciation-Factory Equipment 1,000
Factory Rent 2,000
Factory Insurance 500
Materials Handling 1,500 5,000
Manufacturing cost 80,000 b

2 Kate Company
Cost of goods sold

Decrease in finished goods inventory 35,000

Add: Raw materials purchased 430,000
Direct-labor payroll 200,000
Factory overhead 300,000 930,000
Total 965,000
Less: Increase in finished goods inventory 15,000
Cost of goods sold 950,000 a

3 Joy Corporation

Direct Labor - wages of machine operators 200,000

Direct Materials
Metal wire 500,000
Plastic coating 380,000
Total 880,000 d

4 Katherine Company
Statement of Cost of goods manufactured

Direct Materials
Materials Inventory, Beginning 32,400
Materials Purchases 40,000
Total Materials Available 72,400
Less Materials Inventory, Ending 34,000
Direct Materials Used 38,400
Direct Labor 33,000
Factory Overhead 17,160
Total Manufacturing Cost 88,560
 Add Work in Process Inventory, Beginning 7,200
Total Costs of Goods Placed in Process 95,760
Less Work in Process Inventory, Ending 16,240
Cost of Goods Manufactured 79,520 c

5 Jean Company
Year Ended 2018

Direct Materials
Materials, Jan 1 17,000
Materials Purchases 240,000
Freight In 3,000
Total Materials Available 260,000
Less Materials, Dec 31 19,000
Direct Materials Used 241,000
Direct Labor 320,000
Factory Overhead 188,000
Total Manufacturing Cost 749,000 d(1)
Add Work in Process Inventory, Jan 1 12,000
Total Costs of Goods Placed in Process 761,000
Less Work in Process Inventory, Dec 31 13,000
Cost of Goods Manufactured 748,000
Finished Goods Inventory, Jan 1 62,000
Goods Available for Sale 810,000
Finished Goods Inventory, Dec 31 46,000
Cost of Goods Sold 764,000 d(2)

6 Mafe Company
Statement of Cost of Goods Manufactured

Materials Inventory, January 1 16,000

Purchases 72,000 b/d
Materials Available for Use 88,000
Less Materials Inventory, December 31 17,000
Materials Used 71,000
Direct Labor 30,000
Factory Overhead 20,000
Total Manufacturing Cost 121,000
Add Work in Process Inventory, Jan 1 16,000
Total 137,000
Less Work in Process Inventory, Dec 31 30,000
Cost of Goods Manufactured 107,000
Finished Goods Inventory, Jan 1 14,000
Goods Available for Sale 121,000
Finished Goods Inventory, Dec 31 20,400
 Cost of Goods Sold 100,600

Marlene Company
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 2018

7 Direct Materials Used 100,000

Direct Labor 250,000
Factory Overhead:
Factory supplies 6,000
Indirect Labor 50,000
Machine Maintenance and Repair 10,000
Factory rent, light and power 24,000
Depreciation of machinery 10,000
Payroll taxes (factory payroll) 30,000 130,000
Factory Cost 480,000
Work in process, Jan 1 30,000
Total 510,000
Less Work in process, Dec 31 40,000
Cost of Goods Manufactured 470,000 c(1)
Finished Goods Inventory, Jan 1 50,000
Goods Available for Sale 520,000
Less Finished Goods Inventory, Dec 31 60,000
Cost of Goods Sold 460,000 c(2)

8 Materials Inventory, Beginning 44,000

Raw materials purchased 600,000
Materials Available for Use 644,000
Less Materials Inventory, Ending 60,000
Materials Used 584,000
Direct Labor 240,000
Factory Overhead:
Indirect Labor 120,000
Taxes, Utilities, and Depreciation
of factory building 100,000 220,000
Factory Cost 1,044,000
Work in process, Beginning 80,000
Total 1,124,000
Less Work in process, Ending 96,000
Cost of Goods Manufactured 1,028,000
Finished Goods Inventory, Beginning 50,000
Goods Available for Sale 1,078,000
Less Finished Goods Inventory, Ending 36,000
Cost of Goods Sold 1,042,000 b
9 Yvette Company
Statement of Cost of Goods Manufactured

Direct Materials Used 500,000

Direct Labor 600,000
Factory Overhead 700,000
Factory Cost 1,800,000
Work in Process, Beginning 200,000
Total 2,000,000
Less Work in Process, Ending 250,000
Cost of Goods Manufactured 1,750,000
Finished Goods, Beginning 610,000 b
Goods Available for Use 2,360,000
Less Finished Goods, Ending 760,000
Cost of Goods Sold 1,600,000

10 Direct Materials, Dec 31, 2017 16,000

Purchases 170,000
Materials Available for Use 186,000
Direct Materials, Ending 65,000 a(1)
Direct Materials Used (301,000 - 180,000) 121,000
Direct Labor 180,000
Factory Overhead (180,000 ÷ 60% x 40%) 120,000
Factory Cost 421,000
Work in Process, Dec 31, 2017 34,000
Total 455,000
Less Work in Process, Ending 25,000 a(2)
Cost of Goods Manufactured 430,000
Finished Goods, Dec 31, 2017 30,000
Goods Available for Sale 460,000
Less Finished Goods, Feb 30, 2017 60,000 a(3)
Cost of Goods Sold (500,000 x 80%) 400,000

11 Josie Manufacturing Corporation

Statement of Cost of Goods Manufactured
For the Year Ended December 31, 2018

Materials Inventory, 2017 60,000

Purchases 630,000 a(1)
Materials Available for Use 690,000
Less Materials Inventory, 2018 90,000
Raw Materials Used 600,000
Direct Labor 410,000
Factory Overhead 1,421,000
Manufacturing Cost 1,831,000
 Work in Process Inventory, 2017 34,000
Total 1,865,000
Less Work in Process Inventory, 2018 35,000
Cost of Goods Manufactured 1,830,000 a(2)

Finished Goods Inventory, 2017 46,000

Goods Available for Sale 1,876,000
Less Finished Goods Inventory, 2018 36,000
Cost of Goods Sold 1,840,000

Accrued Factory Payroll, 2017 6,200

Direct Labor 410,000
Indirect Labor 140,000
Accrued Factory Payroll, 2018 -7,000
Payment of Payroll 549,200 a(3)

12 Angie Manufacturing Company

Statement of Cost of Goods Manufactured
For the Year Ended December 31, 2018

Raw Materials Inventory, Jan 1 11,620

Gross Purchases 88,610 b(1)
Freight In 5,570
Raw Materials Available for Use 105,800
Raw Materials Inventory, Dec 31 9,640
Raw Materials Used 96,160
Direct Labor 32,640
Factory Overhead:
Indirect Labor 12,160
Factory Overhead Expenses 31,730
Indirect Materials 21,390 65,280
Manufacturing Cost 194,080
Work in Process Inventory, Jan 1 5,740
Total 199,820
Work in Process Inventory, Dec 31 7,820
Cost of Goods Manufactured (16,000 units) 192,000
Finished Goods Inventory, Jan 1 (500 units x 12) 6,000
Goods Available for Sale 198,000
Finished Goods Inventory, Dec 31 (1,500 units x 12) 18,000
Cost of Goods Sold (15,000 units x 12) 180,000

192,000/16,000 units = 12
Sales 360,000
Cost of Goods Sold 180,000
Gross Profit 180,000 b(2)
13 Lorelei Company

Materials Inventory, Beginning 8,000

Purchases 36,000
Materials Available for Use 44,000
Materials Inventory, Ending 8,500
Materials Used 35,500
Direct Labor (15,000÷2/3) 22,500
Factory Overhead 15,000
Factory Cost 73,000
Work in Process Inventory, Beginning 8,000
Total 81,000
Less Work in Process Inventory, Ending 15,000
Cost of Goods Manufactured 66,000
Finished Goods Inventory, Beginning 7,000
Goods Available for Sale 73,000
Less Finished Goods Inventory, Ending 10,200
Cost of Goods Sold 62,800 d(1)
Sales 72,000
Cost of Goods Sold 62,800
Gross Profit 9,200
Operating Expenses (72,000 x 6%) 4,320
Operating Income 4,880
Other Expenses (72,000 x 5%) 3,600
Net Income Before Income Tax 1,280 d(2)

14 Barney Incorporation

Cost of Goods Sold 111,000

Finished Goods Inventory, Dec 31 17,500
Goods Available for Sale 128,500 a(1)

Sales 182,000
Cost of Goods Sold 111,000
Gross Profit 71,000
Operating Expenses:
Marketing Expenses 14,000
General and Administrative Expenses 22,900 36,900
Operating Income 34,100 a(2)

15 Ruth Manufacturing
Schedule of Manufacturing Overhead
For the Month Ended
 Factory Overhead:
Indirect Labor 22,000
Factory heat, light, and power 11,200
Factory Rent 18,500
Factory Insurance 2,000
Production Supervisor's Salary 5,000
Indirect Materials Used (5,600+16,500-5,180) 16,920
Overtime Pay [250 hrs x (22 x .5)] 2,750
Total 78,370

16 Terry Company
Statement of Cost of Goods Manufactured

Direct Materials
Materials Inventory, Beginning 75,000
Purchases 336,000 d(1)
Materials Available for Use 411,000
Materials Inventory, Ending 85,000
Direct Materials Used 326,000
Direct Labor (686,000 - 326,000) ÷ 160% 225,000 d(2)
Factory Overhead (225,000 x 60%) 135,000
Manufacturing Cost 686,000
Work in Process Inventoy, Beginning 80,000
Total 766,000
Less Work in Process Inventoy, Ending 30,000
Cost of Goods Manufactured 736,000 d(3)
Finished Goods Inventory, Beginning 90,000
Goods Available for Sale 826,000
Less Finished Goods Inventory, Ending 110,000
Cost of Goods Sold 716,000

17 Marlene Corporation
Statement of Cost of Goods Manufactured
For the Month Ended July 31, 2018

Direct Materials
Raw Materials Inventory, July 1 88,000
Purchases 366,000
Freight In 6,000
Materials Available for Use 460,000
Less Raw Materials Inventory, July 31 64,000
Direct Materials Used 396,000
Direct Labor 523,000
Factory Overhead (116,000 x 90% + 468,400) 572,800
Manufacturing Cost 1,491,800 c(1)
 Work in Process Inventory, July 1 29,800
Total 1,521,600
Less Work in Process Inventory, July 31 38,800
Cost of Goods Manufactured 1,482,800
Finished Goods Inventory, July 1 44,200
Goods Available for Sale 1,527,000
Less Finished Goods Inventory, July 31 66,000
Cost of Goods Sold 1,461,000 c(2)

18 Amor Company

Direct Materials
Materials Inventory, Dec 1 24,000
Purchases 56,000
Less Materials Inventory, Dec 31 20,000 60,000
Direct Labor 40,000
Prime Cost 100,000 b(1)

Direct Labor 40,000

Factory Overhead (40,000 ÷ 6.40 x 8) 50,000
Conversion Cost 90,000 b(2)

19 Transporter Company

1 Direct Materials 100,000 70,000 30,000 d(1)

2 Work in Process 320,000 305,000 15,000 d(2)

3 Finished Goods 325,000 300,000 25,000 d(3)

20 Angeli Company
Statement of Cost of Goosd Manufactured
For the Year Ended December 31, 2018

Direct Materials
Materials Inventory, 2017 30,000 a(1)
Purchases 90,000
Materials Available for Use 120,000
Materials Inventory, 2018 20,000
Direct Materials Used 100,000
Direct Labor (72,000 ÷ 200%) 36,000
Factory Overhead 72,000
Manufacturing Cost 208,000
Work in Process Inventory, 2017 3,000 a(2)
Toral 211,000
Work in Process Inventory, 2018 35,000
Cost of Goods Manufactures 176,000
Finished Goods Inventory, 2017 50,000
Goods Available for Sale 226,000
Finished Goods Inventory, 2018 46,000
Cost of Goods Sold 180,000