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Managerial Accounting, 3rd Edition, by Weygandt, Kieso, and Kimmel Solving Managerial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse
Exercise E2-9, At May 31, 2005, the accounts of Yellow Knife Manufacturing Company show the following: 1. May 1 inventories Finished Goods Work in Process Raw Materials Finished Goods Work in Process Raw Materials $12,600 $14,700 $8,200 $11,500 $17,900 $7,100

2. May 31 inventories -

3. Debit postings to work in process were: Direct Materials Direct Labor Manufacturing Overhead Applied 4. Sales totaled $200,000

$62,400 $32,000 $48,000

Instructions: (a) Prepare a condensed cost of goods manufactured schedule. YELLOW KNIFE MANUFACTURING COMPANY Cost of Goods Manufactured Schedule For the Month Ended May 31, 2005 Work in process, May 1 Direct Materials Used $62,400 Direct Labor 32,000 Manufacturing Overhead Applied 48,000 Total manufacturing costs Total Cost of Work in Process Less: Work in Process, May 31 Cost of Goods Manufactured (b) Prepare an income statement for May through gross profit. YELLOW KNIFE MANUFACTURING COMPANY (Partial) Income Statement For the Month Ended May 31, 2005 Sales Cost of Goods Sold Finished Goods Inventory, May 1 Cost of Goods Manufactured Cost of Goods Available for Sale Less: Finished Goods Inventory, May 31 Cost of Goods Sold Gross profit $200,000 $12,600 139,200 151,800 11,500 140,300 $59,700

$14,700

142,400 157,100 17,900 $139,200

(c) In the area below, indicate the balance sheet presentation of the manufacturing inventories at May 31, 2005.

FileName: 170771482.xls.ms_office, Tab: E2-9, Page 1 of 2, 9/9/2013, 12:02 AM

The Sanding Department Production Cost Report For The Month Ended April 30, 2012 Equivalent Units Physical Conversion Units Costs Materials

Quantities
Units to be Accounted For Work in Process, April 1 Started into Production Total Units Units Accounted For Transferred Out Work in Process, April 30 Total Units

Step 1 0 12,000 12,000 3,000 9,000 12,000

Step 2

3,000 9,000 12,000

3,000 3,600 6,600 Conversion Costs $67,320 6,600 $10.20

(3000 x 40%)

Costs
Unit Costs Costs in April Equivalent Units Unit Costs [(a)/(b)] Costs to be Accounted For Work in Process, April 1 Started into Production Total Costs Step 3 Materials $36,000 12,000 $3.00

Total $103,320 $13.20 0 $103,320 $103,320

Cost Reconciliation Schedule

Costs Accounted For Transferred Out (3000 x 13.20) Work in Process, April 30 Materials (9000 x 3.00) Conversion Costs (3600 x 10.20) Total Costs

Step 4 $39,600 $27,000 $36,720

$63,720 $103,320