Accounting “Planning and Control”


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Accounting “Planning and Control” A1_Excel_File (Winter 2013).xlsx ACCT 3332: Planning and Control Dr. Robert Farmer Assignment # 1 Name: Date: Assignment 1: Question 1 A fire on the premises of Bydo Inc. destroyed most of the records. Below is incomplete data from 2011 operations (in thousands of dollars) Bydo Inc. Sales Raw Material, beginning inventory Purchases Raw Material, ending inventory Direct material Direct labour Factory overhead Work in process, beginning inventory Work in process, ending inventory Cost of goods manufactured Finished goods, beginning inventory Finished goods, ending inventory Cost of goods sold Gross profit Operating expenses Operating income (loss) ? 13,000 13,000 ? ? 25,000 ? 8,000 7,000 ? 6,000 ? 55,000 9,000 ? (4,000) Prime costs amounted to $45 million, whereas conversion costs amounted to $33 million. Prime Costs = Direct Material + Direct Labour Conversion Costs = Direct Labour + Mfg Overhead Required: (Use attached sheets) a) Prepare separate schedules for 1) Cost of Goods Sold and 2) Cost of Goods Manufacutred. (In Good Form) b) Prepare an Income Statement for 2011 c) Assume that 432,000 units of the product were produced during the year. Compute the units remaining in finished goods inventory at the end of the year. a) Prepare separate schedules for 1) Cost of Goods Sold and 2) Cost of Goods Manufacutred. Schedule of Cost of Goods Manufactured (in 000’s) Direct material: Raw-material inventory (Begin) Purchases of raw material Raw material available for use Raw-material inventory (Ending) Raw material used Direct labour Manufacturing overhead Total manufacturing costs Work-in-process inventory (Begin) Subtotal Work-in-process inventory (Ending) Cost of goods manufactured Schedule of Cost of Goods Sold (in 000’s) Finished-goods inventory (Begin) Cost of goods manufactured Cost of goods available for sale Finished-goods inventory (Ending) Cost of goods sold b) Prepare an Income Statement for 2011 Income Statement (in 000’s) Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income (Loss) c) Assume that 432,000 units of the product were produced during the year. Compute the units remaining in finished goods inventory at the end of the year. ? Number of units in finish goods (ending inventory) Assignment 1: Question 2 Prepare Case 3-59 (Textbook Page 116) KidCo Inc. Read more

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