Reference no: EM13331168

QUESTION #1

Among the items that Gentry Print Shop accounts for are the following:

1. Direct labor _________

2. Office supplies used _________

3. Depreciation on printing machines _________

4. Finished goods inventory, 12/31 _________

5. Raw materials inventory, 1/1 _________

6. Cost of goods manufactured _________

7. Work in process, 1/1 _________

8. Office supplies inventory, 12/31 _________

9. Indirect labor _________

10. Heat and electricity for the print shop _________

Gentry Print Shop prepares the following schedule and financial statements on a yearly basis:

(a) Cost of goods manufactured schedule.

(b) Income statement.

(c) Balance sheet.

Instructions

For each item, indicate by using the appropriate letter(s) the schedule and/or financial statements in which the item will appear.

QUESTION #2

From the account balances listed below, prepare a schedule of cost of goods manufactured for Timmons Manufacturing Company for the month ended December 31, 2008.

Account Balances

Finished Goods Inventory, December 31 $42,000

Factory Supervisory Salaries 12,000

Income Tax Expense 18,000

Raw Materials Inventory, December 1 12,000

Work In Process Inventory, December 31 25,000

Sales Salaries Expense 14,000

Factory Depreciation Expense 8,000

Finished Goods Inventory, December 1 35,000

Raw Materials Purchases 95,000

Work In Process Inventory, December 1 30,000

Factory Utilities Expense 4,000

Direct Labor 70,000

Raw Materials Inventory, December 31 19,000

Sales Returns and Allowances 5,000

Indirect Labor 21,000