Cost of Goods Manufactured

for May 2007

As the Materials Flow in the Factory, so Flows the Costs

Store Room

Vendor
$70

Factory Area

OB RM

$10

DM

$75

Pchs

$70

DL

$80

Freight in

$0

Available

$80

CB RM

$5

DM

F OH

$100

Total Mfg Cost

$255

OB WinP

$75

$10

Costs Account for

$265

CB WinP

$50

Cost Gds Mfg

$215

MANUFACTURING, Inc.
Statement of Costs of Goods manufactured
for May 2007

Direct materials
Beginning inventory

$10

Purchases

70

Freight in

$0

Direct Materials Available

80

Ending Direct materials Inventory

Direct Materials Used

$75

Direct Labor

$80

Factory Overhead
Depreciation expense - Plant and equipment

$0

Utilities

Indirect labor

Property taxes - Plant

Insurance

Factory Overhead

$100

Total Manufacturing Costs

$255

Add: Beginning Work-in-Process Inventory

$10

Total Manufacturing Cost to Account for

$265

Less: Ending Work-in-Process Inventory

$50

Cost of Goods Manufactured

$215

Manufactured

2007

actory, so Flows the Costs

Finished Goods Warehouse

OB FG

$20

Cost Gds Mfg

$215

Available for sale

$235

CB FG

Customer

$25

Cost Gds Sold

$210

MANUFACTURING, Inc.
Income Statement
for May 2007

Sales
Sales discounts
Other revenue
Total revenue

Cost of Goods Sold

Beginning Finished Goods Inventory

$20

Cost of Goods Manufactured

215

Cost of Goods Available for Sale

235

Ending Finished Goods Inventory

25

Cost of Goods Sold

Gross margin

Selling and Administrative expenses

Depreciation expense - Administrative office

$0

Office salaries

Sales salaries

Utilities

Rent

Insurance

Interest

Total Selling and Administrative expenses

Net Income

$300
0
0
$300

$210
$90

$50

$40

How will unit (or average) cost of manufacturing (materials, labor and overhead) usually change if the production level rises?
A) It will increase, but inversely with the production increase.
B) It will increase in direct proportion to the production increase.
C) It will decrease inversely and in direct proportion to the production increases.
D) It will decrease, but not in direct proportion to the production increase.
E) It will remain constant.

he production level rises?

Daves Lighting Inc. produces lamps. During 2007, the company incurred the following costs:
Factory rent

$97,000

Direct labor used

$343,600

Factory utilities

$48,400

Direct materials purchases

$430,800

Indirect materials

$95,700

Indirect labor

$48,200

Inventories for the year were:

7-Jan

7-Dec

Direct materials

$91,900

$72,900

Work in process

$186,900

$91,600

Finished goods

$135,500

$109,200

What is the total manufacturing cost to account for.

A) $1,178,000
B) $1,535,900
C) $1,273,300
D) $1,269,600
E) $1,082,700
Store Room

OB RM
Vendor

Pchs

$430,800

Factory Area

$91,900

DM

$449,800

$430,800

DL

$343,600

F OH

$289,300

Freight in

$0

Available

$522,700

CB RM
DM

$72,900
$449,800

Total Mfg Cost $1,082,700

OB WinP

$186,900

Costs Account $1,269,600

CB WinP

$91,600

Cost Gds Mfg

$1,178,000

7-Jan

$91,900

Manufacturing Statement
Direct materials
Purchases

$430,800

Direct materials available

$522,700

Direct materials

7-Dec

$72,900

Direct materiasl used

Direct labor

Factory Overhead
Indirect materials

$95,700

Indirect labor

$48,200

Other

$145,400

Total Factory Overhead

Total manufacturing costs

Work in process
Total Manufacturing Costs to Account for

7-Jan

Work in process
Cost of Goods Manufactured

7-Dec

Finished Goods Warehouse

OB FG

$135,500

Cost Gds Mfg

$1,178,000

Available for s

$1,313,500

CB FG

$109,200

Cost Gds Sold $1,204,300

$449,800

$343,600

$289,300

$1,082,700
$186,900
$1,269,600

Customer

$91,600
$1,178,000

The following information was taken from the accounting records of Blazek Manufacturing Company. Unfortunately, some of the data w
Case A
Sales

$92,660

Finished goods inventory, Jan. 1, 2008

$15,450

Finished goods inventory, Dec. 31, 2008

$15,230

Cost of goods sold

Gross margin

$21,170

Selling and administrative expenses

Operating income

$10,330

Work in process, Jan. 1, 2008

Direct material used

$17,500

Direct labor

$13,240

Factory overhead

$19,860

Total manufacturing costs

Work in process, Dec. 31, 2008

Cost of goods manufactured

$6,840
E

What is the value of A?

A)

$27,510

B)

$71,270

C)

$10,840

D)

$71,490

E)

$50,600

Case A
Sales

$92,660

Finished goods inventory, Jan. 1, 2008

$15,450

Finished goods inventory, Dec. 31, 2008

$15,230

Cost of goods sold

$71,490

Gross margin

$21,170

Selling and administrative expenses

$10,840

Operating income

$10,330

Work in process, Jan. 1, 2008

$27,510

Direct material used

$17,500

Direct labor

$13,240

Factory overhead

$19,860

Total manufacturing costs

$50,600

Work in process, Dec. 31, 2008

$6,840

Cost of goods manufactured

$71,270

Case A
Store Room

Factory Area

OB RM
Vendor

DM

$17,500

Pchs

$0

DL

$13,240

Freight in

$0

F OH

$19,860

Available

$0

Total Mfg Cost

$50,600

OB WinP

$27,510

Costs Account

$78,110

CB RM
DM

$17,500

CB WinP
Cost Gds Mfg

$6,840
$71,270

Case B
Store Room

Vendor

Factory Area

OB RM

DM

Pchs

DL

Freight in

F OH

Available

Total Mfg Cost

CB RM
DM

OB WinP
$7,430

Costs Account for

CB WinP
Cost Gds Mfg

Unfortunately, some of the data were destroyed by a computer malfunction.

Case B
F
$7,470
G
$42,070
$3,080
$960
$2,120
$14,660
$7,430
$9,000
H
$37,530
I
$43,350

Case B
F

$45,150
$7,470

$8,750
$42,070
$3,080
$960
$2,120
$14,660
$7,430
$9,000

$21,100
$37,530

$8,840
$43,350

Finished Goods Warehouse

OB FG

$15,450

Cost Gds Mfg

$71,270

Available for s

$86,720

CB FG

$15,230

Cost Gds Sold

$71,490

Customer

Finished Goods Warehouse

$7,430

OB FG

$9,000

Cost Gds Mfg

$43,350

$21,100

Available for s

$50,820

$37,530

CB FG

$14,660

Cost Gds Sold

$52,190
$8,840
$43,350

$7,470

$8,750
$42,070

Customer

Data Table

https://support.office.microsoft.com/en-us/article/Calculate-multiple-results-by-using-a-data-table-e95e2487-6ca6-4413-ad12-77
http://www.excel-easy.com/examples/data-tables.html

Model
Per Unit
Units
Selling Price
Variable Cost
Fixed Cost

$10.00
$5.00

Profit before tax

Total
2,600
$26,000
$13,000
$10,000
$3,000

Data table
Profit before tax
$3,000
1,350
1,600
1,850
2,100
2,350
2,600
2,850
3,100
3,350
3,600
3,850
Units to break even

2,000

Chart Title
$12
$10
$8
$6
$4
$2
$0
1,000

1,500

2,000

2,500

5e2487-6ca6-4413-ad12-77542a5ea50b?CorrelationId=48013c2e-f5ee-42a9-a8b9-b33b3967cde5&ui=en-US&rs=en-001&ad=US

Instructions Data Table

1 Select range B21 to C32
2 Data -> What If Analysis -> Data Table
3 Refer to image and complete
4 Press OK

Chart Title

2,500

3,000

3,500

4,000

S&rs=en-001&ad=US

ysis -> Data Table