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June 1, 2007 June 30, 2007

The document provides financial information for JANO Pharmaceuticals and Fewes Share Company for November 2007 and June 2007 respectively. It includes data on direct materials, direct labor, manufacturing overhead costs, inventory levels, and expenses. The required tasks are to: 1) Prepare journal entries to record costs for JANO for November and determine units sold, manufactured, total and unit cost of goods manufactured, and an income statement. 2) Prepare schedules to compute prime costs, conversion costs, and cost of goods manufactured and sold for Fewes for June.

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637 views

June 1, 2007 June 30, 2007

The document provides financial information for JANO Pharmaceuticals and Fewes Share Company for November 2007 and June 2007 respectively. It includes data on direct materials, direct labor, manufacturing overhead costs, inventory levels, and expenses. The required tasks are to: 1) Prepare journal entries to record costs for JANO for November and determine units sold, manufactured, total and unit cost of goods manufactured, and an income statement. 2) Prepare schedules to compute prime costs, conversion costs, and cost of goods manufactured and sold for Fewes for June.

Uploaded by

አረጋዊ ሐይለማርያም
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Exercises

1. JANO Pharmaceuticals Share Company manufactures a single product. The following data
present transactions and additional information for November 2007, the company’s first
month of operation:
Direct materials purchased on account $58,000
Direct materials issued to production 40,000
Direct labor costs accrued 26,000
Factory insurance expired 3,000
Factory utility paid 2,500
Factory depreciation 6,000
Finished goods, November 30 3,100 units
Indirect materials purchased on account 5,000
Indirect materials issued to production 2,000
Indirect labor costs paid 8,000
Marketing depreciation 1,800

Miscellaneous office expenses 7,000


Miscellaneous marketing expenses 5,500
Office depreciation 2,500
Office salaries and wages 8,000
Sales on account 106,000 ($20 per unit)
Sales salaries and wages 9,000
Work in process, November 30 14,000 (4,000 units)

Required: Using perpetual inventory system, determine


a) prepare entries to record the flow of costs for November
b) units sold in November
c) unit manufactured in November
d) total cost of goods manufactured in November
e) unit cost of goods manufactured in November
f) prepare income statement for November

2. Cost of goods sold for Fewes Share Company for June 2007 was $350,000. Work in process
inventory on June 30, 2007 was 95% of work in process inventory on June 1, 2007.
Manufacturing overhead costs are determined to be 80% of direct labor costs. During June
2007, $110,000 of direct materials were purchased. Other information for June 2007 follows:

June 1, 2007 June 30, 2007


Direct materials $22,200 $19,000
Work in process 40,000 ?
Finished goods 108,500 105,000

Required: For June 2007


a) prepare a schedule to compute prime costs incurred
b) prepare a schedule to compute conversion costs incurred
c) prepare a schedule of cost of goods manufactured
d) prepare a schedule of cost of goods sold

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