Accounting

1. (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larden Corporation for the just completed year. Sales $950 Purchases of raw materials $170 Direct labor $210 Manufacturing overhead $200 Administrative expenses $180 Selling expenses $140 Raw materials inventory, beginning $70 Raw materials inventory, ending $80 Work in process inventory, beginning $30 Work in process inventory, ending $20 Finished goods inventory, beginning $100 Finished goods inventory, ending $70 Required: Prepare a Schedule of Cost of Goods Manufactured statement in the text box below.

Opening stock Material 70

Add purchases 170

Less ending stock material -80

Raw material used 160

Direct labor 210

Manufacturing overhead 200

Total manufacturing cost 570

Add WIP opening inventory 30

Less WIP Ending inventory -20

Cost of gods manufactured 580

2. (Points: 15) 2. (TCO F) The Michigan Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below: Percent completed Units Materials Conversion Work in process, June 1 40,000 65% 45% Work in process, Jun 30 35,000 75% 65% The department started 175,000 units into production during the month and transferred 180,000 completed units to the next department.

REQUIRED: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs. (Points: 20)

Material = 180000 + 35000*.75 = 206250

Conversion = 180000+35000*.65 =202750

3. (TCO B) A cement manufacturer has supplied the following data: Tons of cement produced and sold 220,000 Sales revenue $924,000 Variable manufacturing expense $297,000 Fixed manufacturing expense $280,000 Variable selling and admin expense $165,000 Fixed selling and admin expense $82,000 Net operating income $100,000

Required: a. Calculate the...