CHAPTER 2

EXERCISE 2-11
RAW MATERIALS 7,000
PURCHASES 118,000
RM AVAILABLE FOR USE 125,000
RM END 15,000
RM USED/DIRECT MATERIALS 110,000
DIRECT LABOR 70,000
MANUFACTURING OVERHEAD 80,000
TOTAL MANUFACTURING COST 260,000
BEGINNGING WORK IN PROCESS 10,000
TOTAL WORK IN PROCESS 270,000
ENDING WORK IN PROCESS 5,000

COST OF GOODS MANUFACTURED 265,000

BEGINNING FINISHED GOODS 20,000
COST OF GOODS AVAILABLE FOR
SALE 285,000
ENDING FINISHED GOODS 35,000
COST OF GOODS SOLD 250,000
EXERCISE 2-12

RM BATTERIES BEGINNING -
PURCHASES 8,000
RM USED/DM? 7,600
RM END 400
COST 10
RM END COST 4,000

WIP BEGINNING -
DIRECT MATERIALS USED 7,500 (7600-100)
INCOMPLETE 10%(100-90)
WIP END 750
COST 10
WIP END COST 7,500
EXERCISE 2-12

FINISHED GOODS BEGINNING -

TRANSFERRED TO FINSIHED
GOODS 6,750 (7500*90%)
UNSOLD 30%
FINISHED GOODS END 2,025
COST 10
FG END COST 20,250

SOLD FINISHED GOODS 4,725 (6750*70%)

COST 10
COST OF GOODS SOLD 47,250

USED BY SALES STAFF 100

COST 10
SELLING COST 1,000