Scribd
Upload
123 views2 pages

HW 1accounting

The document provides financial information for Marvin Department Store for 2017. It calculates (a) the cost of goods purchased at $152,000 and (b) the cost of goods sold at $162,000. It then presents Marvin's income statement for 2017, showing revenues of $280,000, cost of goods sold of $162,000, gross margin of $118,000, total operating costs of $84,000, and operating income of $34,000.

Uploaded by

Marjorie Palma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
123 views2 pages

HW 1accounting

The document provides financial information for Marvin Department Store for 2017. It calculates (a) the cost of goods purchased at $152,000 and (b) the cost of goods sold at $162,000. It then presents Marvin's income statement for 2017, showing revenues of $280,000, cost of goods sold of $162,000, gross margin of $118,000, total operating costs of $84,000, and operating income of $34,000.

Uploaded by

Marjorie Palma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Problem 2-34

Computing cost of goods purchased and cost of goods sold. The following data are for Marvin
Department Store.
The account balances (in thousands) are for 2017.
Marketing, distribution, and customer-service costs $ 37,000
Merchandise inventory, January 1, 2017 27,000
Utilities 17,000
General and administrative costs 43,000
Merchandise inventory, December 31, 2017 34,000
Purchases 155,000
Miscellaneous costs 4,000
Transportation-in 7,000
Purchase returns and allowances 4,000
Purchase discounts 6,000
Revenues 280,000 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. 2.
Prepare the income statement for 2017.

a) Cost of goods purchased:


Purchases: 155,000
Transportation-in: 7,000
Purchase returns/allowances: (4,000)
Purchase discounts: (6,000)
Cost of goods purchased: 152,000 (155,000+7,000-4,000-6,000)
b) Cost of goods sold:
Utilities: 17,000
Opening Merchandise inventory: 27,000
Cost of goods purchased: 152,000
Closing Merchandise inventory: (34,000)
Cost of goods sold: 162,000 (17,000+27,000+152,000-34,000)
c) Income Statement:
Revenues: 280,000
Cost of goods sold: (162,00)
Gross margin: 118,000 (Revenues- COG Sold=gross margin) (280,000-162,000)
Operating (period) costs:
General and administrative costs: (43,000)
Marketing, distribution, and customer-service costs: (37,000)
Miscellaneous costs: (4,000)
Total operating costs: (84,000)
Operating income: 34,000 (Gross Margin-Total operating costs=operating income)
(118,000-84,000)

This study source was downloaded by 100000832424834 from CourseHero.com on 01-19-2022 07:36:58 GMT -06:00

https://www.coursehero.com/file/48634079/HW-1Accountingdocx/
Problem 2-39
Income statement and schedule of cost of goods manufactured. The Howell Corporation has the
following account balances (in millions):

Prepare an income statement and a supporting schedule of cost of goods manufactured for the
year ended December 31, 2017. (For additional questions regarding these facts, see the next
problem.)

Revenues: $950
Cost of goods sold:
Beginning finished goods inventory: $70
Cost of goods manufactured: $645
Cost of goods available for sale. $715
Ending finished goods inventory: ($55)
Cost of goods sold total: $660 (COG available for sale-End finished goods
inventory) ($715-$55)
Gross margin: $290
Operating costs:
Marketing, distribution, and customer service costs: $240
Total operating costs: $240
Operating income: $50 (Gross margin-total operating costs=operating income) ($290-$240)

Cost of goods manufactured:


Direct materials:
Beginning inventory: $15
Purchase of direct materials: $325
Cost of material available for use: $340
Ending inventory: $20
Direct materials used: $320
Direct manufacturing labor: $100
Indirect manufacturing labor: $60
Depreciation: $80
Plant supplies used: $10
Plant utilities: $30
Plant supervisory salaries: $5
Miscellaneous plant overhead: $35
Total manufacturing overhead costs: $220 ($60+$80+$10+$30+$5+$35)
Manufacturing costs incurred: $640 ($320+$100+$220)
Beginning work-in-process inventory: $10
Total manufacturing costs to account for: $650 ($640+$10)
Ending work-in-process inventory: $5
Cost of goods manufactured total: $645 (Total manufacturing costs to account for-
Ending work-in process inventory=Cost of goods manufactured total) ($650-$5)

This study source was downloaded by 100000832424834 from CourseHero.com on 01-19-2022 07:36:58 GMT -06:00

https://www.coursehero.com/file/48634079/HW-1Accountingdocx/
Powered by TCPDF (www.tcpdf.org)

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy