ACC349 E2 9

Topics: Inventory, Manufacturing, Balance sheet Pages: 1 (269 words) Published: July 27, 2015
ACC349
/ WileyPLUS Week Two Assignment
Question 2
At May 31, 2011, the accounts of Stellar Manufacturing Company show the following. 1. May 1 inventories finished goods $12,600, work in process $14,700, and raw materials $8,200. 2. May 31 inventories finished goods $9,500, work in process $17,900, and raw materials $7,100. 3. Debit postings to work in process were: direct materials $62,400, direct labor $32,000, and manufacturing overhead applied $40,000. 4. Sales totaled $200,000.

Correct.
Prepare a condensed cost of goods manufactured schedule. (List amounts from largest to smallest e.g. 10, 5, 3, 2. Enter all amounts as positive amounts and subtract where necessary.) STELLAR MANUFACTURING COMPANY

Cost of Goods Manufactured Schedule
For the Month Ended May 31, 2011

Work in process, May 1 14700
Direct materials used 62400
Manufacturing overhead applied 40000
Direct labor 32000
Total manufacturing costs 134400
Total cost of work in process 149100
Less: Work in process, May 31 17900
Cost of goods manufactured 131200

Correct.
Prepare an income statement for May through gross profit. (Enter all amounts as positive amounts and subtract where necessary.)
STELLAR MANUFACTURING COMPANY
(Partial) Income Statement
For the Month Ended May 31, 2011
Sales 200000
Cost of goods sold
Finished goods, May 1 12600
Cost of goods manufactured 131200
Cost of goods available for sale 143800
Finished goods, May 31 9500
Cost of goods sold 134300
Gross profit 65700

Correct.
Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2011. In the May 31 balance sheet, the manufacturing inventories will be reported in Current assets as follows: Finished goods $9500, Work in process $17900, and Raw materials $ 7100.
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