Gíao trình kế toán bằng tiếng anh ch01

CHAPTER 1—PROBLEMS: SET B
P1-1B Agler Company specializes in manufacturing motorcycle helmets. The company has enough orders to keep the factory production at 1,000 motorcycle helmets per
month. Agler’s monthly manufacturing cost and other expense data are shown on the
next page.
Maintenance costs on factory building
Factory manager’s salary
Advertising for helmets
Sales commissions
Depreciation on factory building
Rent on factory equipment
Insurance on factory building
Raw materials (plastic, polystyrene, etc.)
Utility costs for factory
Supplies for general office
Wages for assembly line workers
Depreciation on office equipment
Miscellaneous materials (glue, thread, etc.)

Product Costs
Direct
Materials

Direct
Labor

(LO 3, 4), AP

$ 1,500
5,500
8,000
4,000

700
6,000
3,000
25,000
800
200
54,000
500
2,000

Instructions
(a) Prepare an answer sheet with the following column headings.

Cost
Item

Classify manufacturing costs
into different categories and
compute the unit cost.

Manufacturing
Overhead

Period
Costs

(a) DM $25,000
DL $54,000
MO $19,500
PC $12,700

Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns.
(b) Compute the cost to produce one motorcycle helmet.
P1-2B Elliott Company, a manufacturer of tennis rackets, started production in November
2013. For the preceding five years, Elliott had been a retailer of sports equipment. After a
thorough survey of tennis racket markets, Elliott decided to turn its retail store into a tennis
racket factory.
Raw materials cost for a tennis racket will total $23 per racket. Workers on the production lines are paid on average $15 per hour. A racket usually takes two hours to complete.
In addition, the rent on the equipment used to produce rackets amounts to $1,300 per
month. Indirect materials cost $3 per racket. A supervisor was hired to oversee production; her monthly salary is $3,500.
Janitorial costs are $1,400 monthly. Advertising costs for the rackets will be $8,000 per
month. The factory building depreciation expense is $8,400 per year. Property taxes on the
factory building will be $9,600 per year.
Instructions
(a) Prepare an answer sheet with the following column headings.
Product Costs
Cost
Item

Direct
Materials

Direct
Labor

Manufacturing
Overhead

Period
Costs

Classify manufacturing costs
into different categories and
compute the unit cost.

(LO 3, 4), AP

(a) DM $57,500
DL $75,000
MO $15,200
PC $ 8,000

Assuming that Elliott manufactures, on average, 2,500 tennis rackets per month, enter
each cost item on your answer sheet, placing the dollar amount per month under the
appropriate headings. Total the dollar amounts in each of the columns.
(b) Compute the cost to produce one racket.

P-1


P-2

Problems: Set B

Indicate the missing amount
of different cost items, and
prepare a condensed cost of
goods manufactured schedule,
an income statement, and
a partial balance sheet.

(LO 5, 6, 7), AN

(b) Beg. WIP $1,000
(c) Current assets $15,600

Prepare a cost of goods
manufactured schedule, a
partial income statement,
and a partial balance sheet.

(LO 5, 6, 7), AP

(a) CGM

$324,900

(b) Gross profit $110,400
(c) Current assets $155,000

P1-3B Incomplete manufacturing costs, expenses, and selling data for two different cases
are as follows.
Case
Direct materials used
Direct labor
Manufacturing overhead
Total manufacturing costs
Beginning work in process inventory
Ending work in process inventory
Sales revenue

Sales discounts
Cost of goods manufactured
Beginning finished goods inventory
Goods available for sale
Cost of goods sold
Ending finished goods inventory
Gross profit
Operating expenses
Net income

A

B

$ 6,300
3,000
6,000
(a)
1,000
(b)
22,500
1,500
15,800
$ (c)
18,300
(d)
1,200
(e)
2,700
(f)

$ (g)
4,000
5,000
16,000
(h)
2,000
(i)
1,200
20,000
$ 5,000
(j)
(k)
2,500
6,000
(l)
2,200

Instructions
(a) Indicate the missing amount for each letter.
(b) Prepare a condensed cost of goods manufactured schedule for Case A.
(c) Prepare an income statement and the current assets section of the balance sheet for
Case A. Assume that in Case A the other items in the current assets section are as
follows: Cash $3,000, Receivables (net) $10,000, Raw Materials $700, and Prepaid
Expenses $200.
P1-4B The following data were taken from the records of Moxie Company for the year
ended December 31, 2014.
Raw Materials
Inventory 1/1/14
Raw Materials

Inventory 12/31/14
Finished Goods
Inventory 1/1/14
Finished Goods
Inventory 12/31/14
Work in Process
Inventory 1/1/14
Work in Process
Inventory 12/31/14
Direct Labor
Indirect Labor
Accounts Receivable

$ 47,000
44,200
85,000
57,800
9,500
8,000
145,100
18,100
27,000

Factory Insurance
Factory Machinery
Depreciation
Factory Utilities
Office Utilities Expense
Sales Revenue
Sales Discounts

Plant Manager’s Salary
Factory Property Taxes
Factory Repairs
Raw Materials Purchases
Cash

$

7,400

7,700
12,900
8,600
465,000
2,500
60,000
6,100
800
62,500
18,000

Instructions
(a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were
direct materials.)
(b) Prepare an income statement through gross profit.
(c) Prepare the current assets section of the balance sheet at December 31.


Problems: Set B
P1-5B Ortiz Company is a manufacturer of toys. Its controller resigned in August 2014.

An inexperienced assistant accountant has prepared the following income statement for
the month of August 2014.

Sales revenue
Less: Operating expenses
Raw materials purchases
Direct labor cost
Advertising expense
Selling and administrative salaries
Rent on factory facilities
Depreciation on sales equipment
Depreciation on factory equipment
Indirect labor cost
Utilities expense
Insurance expense

Prepare a cost of goods
manufactured schedule and
a correct income statement.

(LO 5, 6), AN

Ortiz Company
Income Statement
For the Month Ended August 31, 2014
$675,000
$220,000
160,000
75,000
70,000

60,000
50,000
35,000
20,000
10,000
5,000

Net loss

705,000
$ (30,000)

Prior to August 2014, the company had been profitable every month. The company’s
president is concerned about the accuracy of the income statement. As her friend, you have
been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows.
1. Inventory balances at the beginning and end of August were:
Raw materials
Work in process
Finished goods

August 1

August 31

$19,500
25,000
40,000

$35,000
21,000

52,000

2. Only 60% of the utilities expense and 70% of the insurance expense apply to factory
operations; the remaining amounts should be charged to selling and administrative
activities.
Instructions
(a) Prepare a cost of goods manufactured schedule for August 2014.
(b) Prepare a correct income statement for August 2014.

P-3

(a) CGM $493,000
(b) NL $ (6,500)