ACC 206 Week 3- P 16-25A
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This 0 page Study Guide was uploaded by an elite notetaker on Wednesday November 11, 2015. The Study Guide belongs to fin571 at Kaplan University taught by in Fall 2015. Since its upload, it has received 22 views.
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Date Created: 11/11/15
Week 3 P1625A Fido Treats ACC206 Principles of Accounting Tutorial AU P1625A Preparing cost of goods manufactured schedule and income statement for a manufacturing company 3045 min Charlie39s Pets succeeded so well that Charlie decided to manufacture his own brand of chewing bone Fido Treats At the end of December 2012 his accounting records showed the following Requirements 1 Prepare a schedule of cost of goods manufactured for Fido Treats for the year ended December 31 2012 2 Prepare an income statement for Fido Treats for the year ended December 312012 3 How does the format of the income statement for Fido Treats differ from the income statement of a merchandiser 4 Fido Treats manufactured 18075 units of its product in 2012 Compute the company39s unit product cost for the year 3045 min P 1625A Req 1 Fido Treats Schedule of Cost of Goods Manufactured Year Ended December 31 2012 Beginning work in process inventory Direct materials used Beginning direct materials 13400 inventory Purchases of direct materials 33000 Available for use 46400 Ending direct materials inventory g500 Direct materials used 36900 Direct labor 22000 Manufacturing overhead Rent on plant 13000 Utilities for plant 1600 Plant janitorial services Total manufacturing overhead LL00 Total manufacturing costs incurred during the year M Total manufacturing costs to account for 74300 Ending work in process inventory M Cost of goods manufactured M Req 2 Fido Treats Income Statement Year Ended December 31 2012 Sales revenue 109000 Cost of goods sold Beginning finished goods 0 inventory Cost of goods manufactured 72300 Cost of goods available for sale 72300 Ending finished goods inventory 5300 Cost of goods sold 67000 Gross profit 42000 Operating expenses Sales salaries expense 5000 Delivery expense 1700 Customer service hotline expense 1L00 Total operating expenses 8100 Operating income 33900 From the Schedule of Cost of Goods Manufactured in Req 1 Req 3 A manufacturer s cost of goods sold is based on its cost of goods manufactured In contrast a merchandiser s cost of goods sold is based on its cost of merchandise purchases Req 4 Unit product cost Cost of goods manufactured total units produced 72300 18075 400 per unit
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