The Following Costs and Inventory Data Were Taken from the Accounts

question 133

Essay

The following costs and inventory data were taken from the accounts of Simon Company for 2016: $$\begin{array} { l r r r } & \text { January 1,2016 } & \text { December 31, 2016 } \\\text { Inventories: } & & & \text { Raw } \\\text { materials } & \$ 8,000 & \$ 7,000 & \\\text { Work in process } & 15,000 & 13,000 & \\\text { Finished goods } & 16,000 & 12,000 &\\\text { Costs incurred: } & & & \text { Raw } \\\text { materials purchases } & & \$ 98,000 & \\\text { Direct labor } && 42,000 \\\text { Factory rent } & & 8,000 \\\text { Factory utilities } && 10,000 \\\text { Indirect materials } & & 6,000 \\\text { Indirect labor } && 9,000 \\\text { Operating expenses } & & 17,000\end{array}$$ Instructions
a. Prepare a schedule showing the amount of direct materials used in production during the year.
b. Compute the amount of manufacturing overhead incurred during the year.
c. Prepare a schedule of Cost of Goods Manufactured for Simon Company for the year ended December 31 2016 in good form.
d. Prepare the Cost of Goods Sold section of the Income Statement for Simon Company for the year ended December 31 2016 in good form.

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Definitions:

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