Reference no: EM13862778

Problem 1:

The following events took place for Video Wave Manufacturing Company during January 2016, the first month of its operations as a producer of digital video monitors:

a. Purchased $133,200 of materials.

b. Used $94,080 of direct materials in production.

c. Incurred $180,320 of direct labor wages.

d. Incurred $211,680 of factory overhead.

e. Transferred $425,320 of work in process to finished goods.

f. Sold goods with a cost of $365,000.

g. Earned revenues of $652,000.

h. Incurred $86,520 of selling expense.

i. Incurred $71,250 of administrative expense.

Required:

Using the information given, complete the following:

A. Prepare the January 2016 income statement for Video Wave Manufacturing Company. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

B. Determine the inventory balances at the end of the first month of operations.

Problem 2:

The following information is available for Ethtridge Manufacturing Company for the month ending January 31, 2016:

Cost of direct materials used in production	$390,000
Direct labor	336,000
Work in process inventory, January 1	162,000
Work in process inventory, January 31	170,400
Total factory overhead	234,000

Determine Ethtridge's cost of goods manufactured for the month ended January 31, 2016.

Problem 3:

Cost data for Mix-A-Lot Manufacturing Company for the month ended March 31, 2016, are as follows:

Inventories	March 1	March 31
Materials	$315,000	$277,200
Work in process	214,200	239,400
Finished goods	163,800	189,000
		March 31
Direct labor		$567,000
Materials purchased during May		604,800
Factory overhead incurred during May:
Indirect labor		60,480
Machinery depreciation		36,000
Heat, light, and power		12,600
Supplies		10,080
Property taxes		8,820
Miscellaneous costs		16,380

Required:
A. Prepare a cost of goods manufactured statement for March 2016. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Less" or "Plus" will automatically appear if it is required. Enter all amounts as positive numbers.

B. Determine the cost of goods sold for March 2016.

Problem 4:

The following information is available for The NewQuest Corporation for 2016:

Inventories	January 1	December 31
Materials	$351,000	$436,800
Work in process	631,800	592,800
Finished goods	608,400	576,000
		December 31
Advertising expense		$ 296,400
Depreciation expense-office equipment		42,120
Depreciation expense-factory equipment		56,160
Direct labor		670,800
Heat, light, and power-factory		22,460
Indirect labor		78,750
Materials purchased		659,800
Office salaries expense		185,000
Property taxes-factory		18,500
Property taxes-office building		32,400
Rent expense-factory		32,000
Sales		3,010,000
Sales salaries expense		420,000
Supplies-factory		15,400
Miscellaneous costs-factory		9,500

Required:
A. Prepare the 2016 statement of cost of goods manufactured.*

B. Prepare the 2016 income statement.*

* Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Less" or "Plus" will automatically appear if it is required. Enter all amounts as positive numbers.