Chapter-5

Chapter 5 TRUE/FALSE 1. True 2. True 3. False 4. True 5. True

6. True 7. True 8. True 9. True 10. False

Problem 1 – Stillwater Manufacturing 1) Raw and In Process Accounts Payable 2)

Finished goods Raw and In Process Raw materials purchased RIP beg. (42,600-6,900) RIP end (22,500-4,500) Mat. content of units completed

3)

356,000 356,000 373,700 373,700 356,000 35,700 ( 18,000) 373,700

Cost of goods sold Finished goods Mat. content of units completed FG beg.(45,000-17,000) FG. End (16,000-5,000) Mat. content of units sold

4)

Cost of goods sold Payroll FO Applied

4)

Cost of goods sold Raw and In Process Finished goods Conversion cost End Beg. Increase (decrease)

390,700 390,700 373,700 28,000 ( 11,000) 390,700 330,000 150,000 180,000 14,400 2,400 12,000 RIP 4,500 ( 6,900) ( 2,400)

FG 5,000 (17,000) ( 12,000)

Problem 2 – Magnolia Corporation 1)

Raw and In Process Accounts payable

444,000 444,000

2)

Finished goods Raw and In process

443,000 443,000

Purchases Mat. In RIP beg (23,400-2,400) Mat. In RIP end (25,600-3,600) Mat. Content of FG

444,000 21,000 ( 22,000) 443,000

3)

Cost of goods sold Accrued payroll FO Applied

399,000 210,000 189,000

3)

Cost of goods sold Finished goods Mat. Content of FG Mat. In FG beg. (24,000-8,000) Mat. In FG end (19,000-7,000) Mat. Content of units sold

447,000 447,000

4)

Raw and In Process Cost of goods sold Conversion cost in RIP end Conversion cost in RIP beg Adjustment

5)

443,000 16,000 ( 12,000) 447,000 1,200 1,200 3,600 ( 2,400) 1,200

Cost of goods sold Finished goods Conversion cost in FG end Conversion cost in FG beg Adjustment

1,000 1,000 7,000 (8,000) (1,000)

Problem 3 – Smart Manufacturing Company 1. Materials purchased Materials in RIP beg (15,000 – 4,400) Materials in RIP end (24,000 – 7,800) Materials backflushed from RIP to FG

146,000 10,600 ( 16,200) 140,400

2.

Materials backflushed from RIP to FG Materials in FG beg (36,000-10,800) Materials in FG end (18,000-6,500) Materials backflushed from FG to CofGS

140,400 25,200 ( 11,500) 154,100

3)

a) Raw and In process Accounts payable

146,000 146,000

b) Cost of goods sold Accrued payroll FO Applied

180,000

c) Finished goods Raw and In Process

140,400 140,400

d) Cost of goods sold Finished goods

154,100 154,100

80,000 100,000

e) Raw and In Process Cost of goods sold Finished goods End Beginning Increase (decrease(

3,400 900 4,300 RIP 7,800 (4,400) 3,400

FG 6,500 (10,800) ( 4,300)

Problem 4 – Chiz Manufacturing Company 1)

Raw and In Process Accounts payable

230,000 230,000

2)

Finished goods Raw and In Process

245.200 245,200

Materials purchased Materials in RIP beg. (40,000-12,000) Materials in RIP end (28,500-15,700) Materials backflushed from RIP 3)

Cost of goods sold Finished goods

264,700 264,700

Materials backflushed from RIP Materials in FG beg. (35,000-8,800) Materials in FG end ( 19,800-13,100) Materials backflushed from CofGS 4)

5)

230,000 28,000 ( 12,800) 245,200

245,200 26,200 ( 6,700) 264,700

Cost of goods sold Accrued payroll FO Applied

405,000 180,000 225,000

Finished goods Cost of goods sold Raw and In Process End Beginning Increase (decrease)

4,300 600 3,700 RIP 12,000 (15,700) (3,700)

FG 13,100 ( 8,800) 4,300