Question

PLEASE HELP WITH #9

HERE ARE THE ANSWERS TO PREVIOUS QUESTIONS 1-8

9. Determine the amounts for the following. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead e) Gross Margin f Income from Operations g) Net Income Manufacturing Process Information Mr. Frank, the CEO of Frank's Frames, Inc. has begun a small manufacturing process that will manufacture picture frames and then sell the frames to merchandising companies. The manufacturing process starts with the construction of the wood molding, inspected and then glass will be installed as a final step in the process. Once the frames are completed they are then transferred to finished goods. This is a process cost system and the company elects to use the FIFO method of accounting for product costs. Direct material-wood is added 100% at the beginning of the process. Direct material glass is added 100% as the last step in the manufacturing process. At the beginning of the accounting period, Mr. Frank estimates that production will be 80,000 frames during the year. Estimated factory overhead is $40,000. This information is to be used to determine the application rate for the manufacturing overhead Estimated and actual direct labor costs totaled $29,100. Actual factory overhead costs totaled $36,000. The following information is available concerning direct materials. Direct Materials-Wood Beginning inventory Purchase of wood 0 board feet 240,000 board feet @ $1.60 a foot The company starts 75,000 frames. Each frame contains three board feet of wood molding Direct Material-Glass Beginning inventory Purchases of glass 0 panes of glass 240,000 panes of glass $.25 per pane Used 72,000 panes this period The Work-in-Process account has the following information: Ending work in process inventory is 100% complete as to wood molding 25% complete as to conversion costs 0% complete as to glass panes The Finished Goods account has the following Information: The finished goods inventory at January 1, 2018 had a balance of 20,000 frames at a cost of $140,000 and on December 31, 2018 had an ending balance of 10,000 frames The selling price of the frame is $10.00. tax rate is 30%. Selling and Administrative Costs totaled $100,000; 8. Prepare a cost of production report. This report should show all costs transferred into Work in Process and the cost transferred to finished goods. This process uses FIFO costing Whole Units DM Wood DM Glass Conversion Costs TotalS Beginning WIP Started and completed 72000 72000 72000 72000 out 72000 Ending WIP Equivalent units Cost Incurred Cost per Eq, unit Cost of Opening WIP Cost of Started and completed(72000) Cost of transferred out Cost of Closing WIP 0(0%) 2000 18000 0.25 | 750 (2596) 2750 65475 75000 4.8 0.9 345600 18000 3000 4.8-14400 0 750 0.9 675 15075

Answer 1

(a) Encius Le&t Cedt Materiel - uc lonson lot Cait luA Endng Sales $/o 82 gavo Selling end Adw

LC C) Atpliod adachusing suas head$36, 32s Sales Q $10 827