11. In June, Olympic Company purchased materials
costing $38,000, and incurred direct labor cost of $42,000. Overhead totaled
$27,000 for the month. Information on inventories was as follows.

June 1

Don't use plagiarized sources. Get Your Custom Essay on
Chapter 2—Basic Managerial Accounting Concepts
Just from $10/Page
Order Essay

June 30

Materials

$3,000

$2,700

Work in process

1,000

1,275

Finished goods

2,500

1,775

Required:

A.

Calculate the cost of direct materials used during June.

B.

Calculate the total manufacturing cost for June.

C.

Calculate the cost of goods manufactured for June.

D.

Calculate cost of goods sold for June.

Statements KEY: Bloom’s: Application NOT: 5 min.

12. Templar Company, a manufacturing firm, has supplied
the following information from its accounting records for the month of
November:

Factory supplies used

$18,000

Depreciation on factory building

17,000

Salary of company controller

6,000

Factory janitorial costs

5,000

Marketing and promotion

4,500

Direct labor cost

22,000

Purchases of raw materials

10,000

Finished goods inventory, Nov. 1

2,250

Finished goods inventory, Nov. 30

3,750

Work-in-process inventory, Nov. 1

4,200

Work-in-process inventory, Nov. 30

2,750

Materials inventory, Nov. 1

3,500

Materials inventory, Nov. 30

5,100

Required:

A.

Prepare a Statement of Cost of Goods Manufactured

B.

Prepare a Statement of Cost of Goods Sold

13. Fidalgo Company makes stereos. During the
year, Fidalgo manufactured and sold 75,000 stereos at a sales price of $575 per
unit. Fidalgo’s per-unit product cost was $540 and selling and administrative
expenses totaled $2,000,000.

Required:

A.

Compute the total sales revenue

B.

Compute the gross margin

C.

Compute the operating income

D.

Compute the operating income if 75,000 stereos were produced and
69,000 were sold.

14. Baleen Company supplied the following data at
the end of the current year:

Sales commissions

$ 12,000

Sales revenue

120,000

Research and development

17,000

Finished goods inventory, Jan. 1

7,500

Work in process inventory, Jan 1

9,000

Finished goods inventory, Dec. 31

6,000

Work in process inventory, Dec. 31

11,000

Cost of goods manufactured

52,000

Required:Prepare an income statement for Baleen Company.

15. Macon Company supplied the following data and
information on inventories at the end of the current year.

January 1, 2011

December 31,2011

Materials

$21,000

$23,500

Work in process

17,500

8,500

Finished goods

26,000

27,000

Direct labor

$ 40,000

Selling expenses

31,000

Sales revenue

400,000

Administrative expenses

14,500

Purchases of raw materials

62,000

Factory supervision

50,000

Factory supplies used

25,000

Required: Prepare an income statement of Macon
Company for the current year.

Order your essay today and save 10% with the discount code ESSAYHELP