Cost Accounting Answers 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)

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)

356,000 356,000

390,700 390,700 373,700 28,000 ( 11,000) 390,700

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

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

442,460 442,460

Purchases Mat. In RIP beg (23,400-7,020) Mat. In RIP end (25,600-7,680) Mat. Content of FG

3)

4)

Cost of goods sold Accrued payroll FO Applied

730,000 350,000 380,000

Cost of goods sold Finished goods Mat. Content of FG Mat. In FG beg. (24,000-7,200) Mat. In FG end (19,000-5,700) Mat. Content of units sold

445,960 445,960 442,460 16,800 ( 13,300) 445,960

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

5)

444,000 16,380 ( 17,920) 442,460

660 660 7,680 ( 7,020) 660

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

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 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

3)

a) Raw and In process Accounts payable

1,500 1,500 5,700 (7,200) (1,500)

146,000 10,600 ( 16,200) 140,400 140,400 25,200 ( 11,500) 154,100 146,000 146,000

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 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)

Cost of goods sold Accrued payroll FO Applied

230,000 28,000 ( 12,800) 245,200 264,700 264,700 245,200 26,200 ( 6,700) 264,700 405,000 180,000 225,000

5)

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