CHAPTER 5

TRUE/FALSE
1. True
2. True
3. False
4. True
5. True

6. True
7. True
8. True
9. True
10. False

Problem 1 Stillwater Manufacturing

1)
Raw and In Process
Accounts Payable
2)

Finished goods
Raw and In Process
Raw materials purchased
RIP beg. (42,600-6,900)
RIP end (22,500-4,500)
Mat. content of units completed

3)

373,700
373,700
356,000
35,700
( 18,000)
373,700

Cost of goods sold

Finished goods
Mat. content of units completed
FG beg.(45,000-17,000)
FG. End (16,000-5,000)
Mat. content of units sold

4)

356,000
356,000

390,700
390,700
373,700
28,000
( 11,000)
390,700

Cost of goods sold

Raw and In Process
Finished goods
Conversion cost
End
Beg.
Increase (decrease)

14,400
2,400
12,000
RIP
4,500
( 6,900)
( 2,400)

FG
5,000
(17,000)
( 12,000)

Problem 2 Magnolia Corporation

1)

Raw and In Process

Accounts payable

444,000
444,000

2)

Finished goods
Raw and In process

442,460
442,460

Purchases
Mat. In RIP beg (23,400-7,020)
Mat. In RIP end (25,600-7,680)
Mat. Content of FG

3)

4)

Cost of goods sold

Accrued payroll
FO Applied

730,000
350,000
380,000

Cost of goods sold

Finished goods
Mat. Content of FG
Mat. In FG beg. (24,000-7,200)
Mat. In FG end (19,000-5,700)
Mat. Content of units sold

445,960
445,960
442,460
16,800
( 13,300)
445,960

Raw and In Process

Cost of goods sold
Conversion cost in RIP end
Conversion cost in RIP beg
Adjustment

5)

444,000
16,380
( 17,920)
442,460

660
660
7,680
( 7,020)
660

Cost of goods sold

Finished goods
Conversion cost in FG end
Conversion cost in FG beg
Adjustment

Problem 3 Smart Manufacturing Company

1.
Materials purchased
Materials in RIP beg (15,000 4,400)
Materials in RIP end (24,000 7,800)
Materials backflushed from RIP to FG
2.

Materials backflushed from RIP to FG

Materials in FG beg (36,000-10,800)
Materials in FG end (18,000-6,500)
Materials backflushed from FG to CofGS

3)

a) Raw and In process

Accounts payable

1,500
1,500
5,700
(7,200)
(1,500)

146,000
10,600
( 16,200)
140,400
140,400
25,200
( 11,500)
154,100
146,000
146,000

b) Cost of goods sold

Accrued payroll
FO Applied

180,000

c) Finished goods
Raw and In Process

140,400
140,400

d) Cost of goods sold

Finished goods

154,100
154,100

80,000
100,000

e) Raw and In Process

Cost of goods sold
Finished goods

End
Beginning
Increase (decrease(

3,400
900
4,300
RIP
7,800
(4,400)
3,400

FG
6,500
(10,800)
( 4,300)

Problem 4 Chiz Manufacturing Company

1)

Raw and In Process

Accounts payable

230,000
230,000

2)

Finished goods
Raw and In Process

245.200
245,200

Materials purchased
Materials in RIP beg. (40,000-12,000)
Materials in RIP end (28,500-15,700)
Materials backflushed from RIP
3)

Cost of goods sold

Finished goods
Materials backflushed from RIP
Materials in FG beg. (35,000-8,800)
Materials in FG end ( 19,800-13,100)
Materials backflushed from CofGS

4)

Cost of goods sold

Accrued payroll
FO Applied

230,000
28,000
( 12,800)
245,200
264,700
264,700
245,200
26,200
( 6,700)
264,700
405,000
180,000
225,000

5)

Finished goods
Cost of goods sold
Raw and In Process

End
Beginning
Increase (decrease)

4,300
600
3,700
RIP
12,000
(15,700)
(3,700)

FG
13,100
( 8,800)
4,300