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bus 503 chapter 2 home solutions

By John Wilson,2014-11-11 03:18
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bus 503 chapter 2 home solutions

PROBLEM 2-43 (35 MINUTES)

    SAN FERNANDO FASHIONS COMPANY 1.

    SCHEDULE OF COST OF GOODS MANUFACTURED

    FOR THE YEAR ENDED DECEMBER 31, 20X2

     Direct material:

     Raw-material inventory, January 1 ............................................. $ 40,000

     Add: Purchases of raw material .................................................. 180,000

     Raw material available for use ..................................................... $220,000

     Deduct: Raw-material inventory, December 31 ......................... 25,000

     Raw material used ......................................................................... $195,000

     Direct labor ......................................................................................... 200,000

     Manufacturing overhead:

     Indirect material ............................................................................. $ 10,000

     Indirect labor .................................................................................. 15,000

     Utilities: plant ................................................................................. 40,000

     Depreciation: plant and equipment ............................................. 60,000

     Other ................................................................................................ 80,000

     Total manufacturing overhead .................................................... 205,000

     Total manufacturing costs ............................................................... $600,000

     Add: Work-in-process inventory, January 1 .................................. 40,000

     Subtotal ............................................................................................... $640,000

     Deduct: Work-in-process inventory, December 31 ....................... 30,000

     Cost of goods manufactured ........................................................... $610,000

    SAN FERNANDO FASHIONS COMPANY 2.

    SCHEDULE OF COST OF GOODS SOLD

    FOR THE YEAR ENDED DECEMBER 31, 20X2

     Finished goods inventory, January 1 .............................................................. $ 20,000

     Add: Cost of goods manufactured ................................................................... 610,000

     Cost of goods available for sale ....................................................................... $630,000

     Deduct: Finished-goods inventory, December 31 ......................................... 50,000

     Cost of goods sold ............................................................................................. $580,000

PROBLEM 2-43 (CONTINUED)

    SAN FERNANDO FASHIONS COMPANY 3.

    INCOME STATEMENT

    FOR THE YEAR ENDED DECEMBER 31, 20X2

     Sales revenue ...................................................................................................... $950,000

     Less: Cost of goods sold .................................................................................. 580,000

     Gross margin ...................................................................................................... $370,000

     Selling and administrative expenses ............................................................... 150,000

     Income before taxes ........................................................................................... $220,000

     Income tax expense ........................................................................................... 90,000

     Net income ........................................................................................................... $130,000

4. In the electronic version of the solutions manual, press the CTRL key and click on

    the following link: Build a Spreadsheet 02-43.xls

Problem 2-45 (20 minutes)

1. a, d, g, i

    2. a, d, g, j

    3. b, f

    4. b, d, g, k

    5. a, d, g, k

    6. a, d, g, j

    7. b, c, f

    8. b, d, g, k

    9. b, c and d*, e and f and g*, k*

     *The building is used for several purposes.

    10. b, c, f

    11. b, c, h

    12. b, c, f

    13. b, c, e

    ;;;14. b, c and d, e and f and g, k

    ; The building that the furnace heats is used for several purposes.

    15. b, d, g, k

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