Reference no: EM13490257
Assignment 1 - Beginning of class
PROBLEM 1 Chapter 2
The following information pertains to the Wong Corporation:
Specific date Year 2013
Work in process, January 1, 2013 $12,000,000 Plant utilities $ 6,000,000
Direct Materials, December 31, 2013 $ 6,000,000 Indirect manufacturing labour $24,000,000
Finished Goods, December 31,2013 $14,400,000 Amortization -Plant, Building, & Equipment $10,800,000
Accounts payable, December 31,2013 $24,000,000 Revenues $420,000,000
Accounts receivable, January 1, 2013 $60,000,000 Miscellaneous manufacturing overhead $ 12,000,000
Work in process, December 31, 2013 $ 2,400,000 Marketing, distribution, and customer service costs $108,000,000
Finished goods, January 1, 2013 $48,000,000 Purchases of direct materials $ 96,000,000
Accounts receivable, Dec. 31, 2013 $36,000,000 Direct manufacturing labour $ 48,000,000
Accounts payable, January 1, 2013 $48,000,000 Plant supplies used $ 7,200,000
Direct materials, January 1, 2013 $36,000,000 Property taxes on plant $ 1,200,000
Wong, manufacturing cost system uses a three-part classification of manufacturing costs. There are two prime costs and one conversion cost: direct materials, direct manufacturing labour, and indirect manufacturing costs.
REQUIRED:
1. Identify the prime costs. Identify the conversion costs.
2. Prepare an income statement and a supporting schedule of cost of goods manufactured.
3. How would your answer to part 2 be modified if you were asked for a schedule of cost of goods manufactured and sold instead of a schedule of cost of goods manufactured? Be specific.