Question 1 - The ObiWan Company reported the following data related to its manufacturing operations during year y1 to y2 (ObiWan has a December 31st year end)
|
Jan 1, Y2
|
Jan 1, Y1
|
|
Raw Materials
|
7,300
|
5,500
|
|
Work in Process
|
25,700
|
23,400
|
|
Finished Goods
|
41,600
|
48,500
|
|
|
|
|
Cost Incurred:
|
|
|
|
Raw Material Purchased
|
83,000
|
|
|
Factory direct labor
|
153,000
|
|
|
Factor Suppliers
|
36,000
|
|
|
Factory depreciation
|
93,000
|
|
|
President's Salary
|
103,000
|
|
|
Sales force salaries
|
56,000
|
|
|
Sales force expenses
|
5,200
|
|
|
Heat, Light and power
|
12,000
|
|
|
(75% applies to manufacturing)
|
|
|
|
Insurance
|
36,000
|
|
|
(60% applies to manufacturing)
|
Calculate:
a: The cost of materials requisitioned for production during the year(between y1 and y2)
b: The cost of the units that were completed and transferred to finished goods during the year
c: The cost of goods sold during the year
Question 2 - The Chewbaca Company reported the folowing data related to its manufacturing operations between Year1 and Year2 (Chewbaca has a December 31st Fiscal year end)
|
Jan 1, Y2
|
Jan 1, Y1
|
|
Raw Materials
|
10,200
|
3,800
|
|
Work in Process
|
22,600
|
18,500
|
|
Finished Goods
|
38,750
|
38,105
|
|
|
|
|
Cost Incurred:
|
|
|
|
Raw Material Purchased
|
88,700
|
|
|
Factory direct labor
|
178,960
|
|
|
Factor Suppliers
|
43,650
|
|
|
Factory depreciation
|
105,000
|
|
|
President's Salary
|
110,000
|
|
|
Sales force salaries
|
88,000
|
|
|
Sales force expenses
|
8,700
|
|
|
Heat, Light and power
|
16,000
|
|
|
Factory Insurance
|
29,000
|
|
Calculate:
a: The cost of materials requisitioned for production during the year.
b: The cost of the units that were completed and transferred to finished goods during the year.
c: The cost of goods sold during the year.