Name:

Section:

Solution

Exercise 1-1
The variances for kitchen wages and utilities were favorable for September, whereas
the variances for food and supplies were unfavorable. On a year-to-date basis, the
only expense that did not have the same pattern as September was utilities, which had
a $120 F variance for the month, but an $850 U year-to-date variance.

Name:
Section:

Solution

When subtotals and totals are correct the cell will change to green.
Exercise 1
a.
Valley View Manufacturing Co.
Statement of Cost of Goods Manufactured
For the Month Ended January 31, 20-Materials:
Inventory, January 1
Purchases
Total cost of available materials
Less inventory, January 31
Cost of materials used
Less indirect materials used
Cost of direct materials used in production
Direct labor
Factory overhead:
Indirect materials
Indirect labor
Other
Total factory overhead
Total manufacturing cost
Add work in process inventory, January 1

$
$
$

25,000
21,000
46,000
22,000
24,000
1,000
$

1,000
3,000
8,000
$
$

Less work in process inventory, January 31

Cost of goods manufactured

b.
Cost of goods sold:
Finished goods inventory, January 1
Add cost of goods manufactured
Goods available for sale
Less finished goods inventory, January 31
Cost of goods sold

$
$
$

23,000
18,000

32,000
57,000
89,000
30,000
59,000

12,000
53,000
24,000
77,000
20,000
57,000

Name:
Solution
Section:
When subtotals and totals are correct the cell will change to green.
Exercise 1-9
a.

Direct materials used during the period

Add inventory of direct materials at the end of the period
Direct materials available during the period
Less inventory of direct materials at the beginning of the
period
Direct materials purchased during the period

b.

Total manufacturing costs incurred during the period

Less: Direct materials used
Factory overhead incurred
Direct labor costs incurred during the period

c.

Cost of goods available for sale

Less finished goods inventory at the end of the period
Cost of goods sold during the period

d.

Sales
Cost of goods sold
Gross profit

$205,000
175,000

$205,000
95,000
$300,000
90,000
$210,000
$675,000
380,000
$295,000
$775,000
75,000
$700,000
$900,000
700,000
$200,000

Name:
Section:

Solution

When subtotals and totals are correct the cell will change to green.
Problem 1-1
Saito's Sushi Bar
Performance Report - Dining Room
February 28, 2013
Budgeted
Expense
Dining room wages
Laundry and housekeeping
Utilities
Depreciation
Total

Year-toDate

February
$

4,150
1,500
2,050
1,500
9,200

Actual

8,450
3,150
4,250
3,000
18,850

Year-toDate

February
$

4,400
1,400
2,100
1,500
9,400

Variance

9,100
3,000
4,450
3,000
19,550

Year-toDate

February
$

(250)
100
(50)
0
$
(200)
Unfavorable

(650)
150
(200)
0
(700)
Unfavorable

Name: Solution
Section:
When subtotals and totals are correct the cell will change to green.
Problem 1-2
1.

2.

Merchandise inventory, April 1

Plus purchases
Merchandise available for sale
Less merchandise inventory, April 30
Cost of goods sold

Finished goods, April 1

Plus cost of goods manufactured
Finished goods available for sale
Less finished goods, April 30
Cost of goods sold

$
$

$
$

38,000
121,000
159,000
33,000
126,000
67,000
287,000
354,000
61,000
293,000

Name:
Section:

Solution

When subtotals and totals are correct the cell will change to green.
Problem 1-4
1.
Kokomo Furniture Company
Statement of Cost of Goods Manufactured
For the Month Ended November 30, 2013
Direct materials:
Inventory, November 1
Purchases
Total cost of available materials
Less inventory, November 30
Cost of materials used
Less indirect materials used

0
33,000

33,000
7,400
25,600
1,400

Cost of direct materials used

Direct labor
Factory overhead:
Indirect materials
Indirect labor
Depreciation of building
Depreciation of machinery and equipment
Utilities
Total factory overhead

18,500
$

1,400
4,300
3,000
2,200
2,750
13,650

Cost of goods manufactured during the month

2.

24,200

56,350

68,300

Kokomo Furniture Company

Income Statement
For the Month Ended November 30, 2013
Sales
Cost of goods sold:
Finished goods inventory, November 1
Add cost of goods manufactured
Goods available for sale
Less finished goods inventory, November 30
Gross profit on sales
Selling and administrative expenses
Net income

$
$

0
56,350
56,350
13,900

42,450
$
$

25,850
15,200
10,650

3.
Kokomo Furniture Company
Balance Sheet
November 30, 2013
Assets
Current assets:
Cash
Accounts receivable
Inventories:
Finished goods
Work in process
Materials
Total current assets
Plant and equipment:
Building
Less accumulated depreciation
Machinery and equipment
Less accumulated depreciation
Total plant and equipment
Total assets

$
$

300,000
3,000 $
88,000
2,200

Liabilities and Stockholder's Equity

Current liabilities:
Accounts payable
Stockholder's equity:
Capital stock
$
Retained earnings
Total stockholder's equity
Total liabilities and stockholder's equity

13,900
0
7,400

21,800
16,200

21,300
59,300

382,800
442,100

8,900

433,200
442,100

297,000
85,800

422,550
10,650

Name:
Section:

Solution

When subtotals and totals are correct the cell will change to green.
Problem 1-8
1.
Dennis Manufacturing Company
Statement of Cost Of Goods Manufactured
For the Month Ended July 31, 20-Materials:
Inventory, July 1
Purchases
Total cost of available materials
Less inventory, July 31
Cost of direct materials used in production
Direct labor
Factory overhead
Total manufacturing cost
Add work in process inventory, July 1
Total
Less work in process inventory, July 31
Cost of goods manufactured

$
$

20,000
110,000
130,000
26,000
$

104,000
160,000
80,000
344,000
40,000
384,000
36,000
348,000

2.
Dennis Manufacturing Company
Schedule to Compute Prime Cost
For the Month Ended July 31, 20-Direct materials used
Direct labor incurred
Prime cost incurred during July

$
$

104,000
160,000
264,000

3.
Dennis Manufacturing Company
Schedule to Compute Conversion Cost
For the Month Ended July 31, 20-Direct labor incurred
Factory overhead
Conversion cost incurred during July

$
$

160,000
80,000
240,000

Name:
Section:

Solution

When amounts are correct the cell will change to green

Problem 1-9

Manlius Manufacturing Co.

Statement of Cost of Goods Manufactured
For the Year Ended December 31, 2013
Direct materials used
Direct labor
Factory overhead
Total manufacturing cost
Add work in process inventory, January 1
Subtotal
Less work in process inventory, December 31
Cost of goods manufactured

$
$
$

370,000
360,000
270,000
1,000,000
20,000
1,020,000
50,000
970,000

Name:
Section:

Solution

When subtotals and totals are correct the cell will change to green
Problem 1-10
1.
Job 101
Direct materials
Direct labor
Factory overhead
Total

2,200
2,700
1,200
6,100

Job 102
$

5,700
6,800
2,000
14,500

Job 103
$

7,100
9,200
3,800
20,100

Job 104
$

1,700
2,100
1,000
4,800

GENERAL JOURNAL

2.
a.

b.

c.

d.

e.

f.

g.

h.

Account Titles
Materials
Accounts Payable

Debit
37,000

Work in Process
Factory Overhead
Materials

16,700
1,350

Payroll
Wages Payable

23,050

Work in Process
Factory Overhead
Payroll

20,800
2,250

Credit
37,000

18,050

23,050

23,050

Factory Overhead
Accounts Payable

2,400

Factory Overhead
Accumulated Depreciation - Machinery

2,000

Work in Process
Factory Overhead

8,000

2,400

2,000

8,000

Finished Goods
Work in Process

40,700

Accounts Receivable
Sales

39,000

40,700

39,000

Cost of Goods Sold

Finished Goods

Job 101
Job 102
Job 103

Completed
6,100
14,500
20,100
$
40,700
$

20,600
20,600

Billed
6,100
14,500
20,600

3.
Added to work in process:
Direct materials
Direct labor
Factory overhead
Total
Transferred to finished goods
Balance (represented by the cost of Job 104)

$
$

16,700
20,800
8,000
45,500
40,700
4,800

4.
Added to finished goods
Less costs of goods sold
Balance (represented by the cost of Job 103)

$
$

40,700
20,600
20,100

Total
16,700
20,800
8,000
45,500