Classic manufacturing costing system uses a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The following items (in millions) pertain to Classic Corporation. Requirement Prepare an income statement and a supporting schedule of cost of goods manufactured. Begin by preparing the supporting schedule of cost of goods manufactured (in millions). Start with the direct materials and direct labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured. For Specific Date Work-in-process inventory, January 1, 2020 $12 Direct materials inventory, December 31, 2020 8 Finished-goods inventory, December 31, 2020 11 Accounts payable, December 31, 2020 20 Accounts receivable, January 1, 2020 59 Work-in-process inventory, December 31, 2020 1 Finished-goods inventory, January 1, 2020 46 Accounts receivable, December 31, 2020 30 Accounts payable, January 1, 2020 50 Direct materials inventory, January 1, 2020 35 For Year 2020 Plant utilities $10 Indirect manufacturing labor 22 Depreciation—plant and equipment 7 Revenues 358 Miscellaneous manufacturing overhead 17 Marketing, distribution, and customer-service costs 98 Direct materials purchased 82 Direct manufacturing labor 41 Plant supplies used 6 Property taxes on plant 5

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 17MC: Under absorption costing, a unit of product includes which costs? A. direct material, direct labor,...

See similar textbooks

Related questions

Question

Classic manufacturing costing system uses a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The following items (in millions) pertain to

Classic Corporation.

Requirement

Prepare an income statement and a supporting schedule of cost of goods manufactured.

Begin by preparing the supporting schedule of cost of goods manufactured (in millions). Start with the direct materials and direct labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured.

For Specific Date
Work-in-process inventory, January 1, 2020	$12
Direct materials inventory, December 31, 2020	8
Finished-goods inventory, December 31, 2020	11
Accounts payable, December 31, 2020	20
Accounts receivable, January 1, 2020	59
Work-in-process inventory, December 31, 2020	1
Finished-goods inventory, January 1, 2020	46
Accounts receivable, December 31, 2020	30
Accounts payable, January 1, 2020	50
Direct materials inventory, January 1, 2020	35

For Year 2020
Plant utilities	$10
Indirect manufacturing labor	22
Depreciation—plant and equipment	7
Revenues	358
Miscellaneous manufacturing overhead	17
Marketing, distribution, and customer-service costs	98
Direct materials purchased	82
Direct manufacturing labor	41
Plant supplies used	6
Property taxes on plant	5

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions