443170424.

xlsx
Learning Objectives

Module 1 Learning Objective:

(2) Identify, define, track and accumulate period and product costs for service, merchandising and manufacturing businesses
through accounts and across financial statements for pricing and profitability assessment.

This assignment provides opportunities to practice and master the following learning objectives:

1. Classify costs by financial statement impact (capitalize vs expense) and by traceability (direct vs indirect).
2. Utilize given information to prepare a Schedule of Cost of Goods Manufactured.
3. Utilize given information to prepare an Income Statement.
4. Utilize the following Excel skills in accomplishing the above objectives:
Use + - * /
Use SUM
Use cell referencing, formatting
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Cost Classification

Costs Product Cost Period Cost DM DL FOH Selling Exp Gen & Admin Exp

Advertising Expense X X
Depr. Expense - Office equip X X
Depr. Expense - Selling equip X X
Depr. Expense - Factory equip X X
Factory Supervision X X
Factory supplies used X X `
Factory utilities X X
Direct labor X X
Indirect labor X X
Misc. production costs X X
Office salaries expense X X
Raw materials purchases X X
Rent expense - Office space X X
Rent expense - Selling space X X
Rent expense - Factory equip X X
Maint. Expense - Factory equip. X X
Sales salaries expense X X

TAB INSTRUCTIONS

(1) Classify each cost as either product or period. Indicate your answer with X. The first line is completed for you.
(A) Classify product costs as direct materials (DM) direct labor (DL) or factory overhead (OH)
(B) Classify period costs as either selling or general and administrative.
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Schedule CGM

Name
Cost of Goods Manufactured Where applicable, all numbers should be cell references or formulas (ie SUM). Full credit will not be given for numbers typed into cells.
Proper formatting should also be applied ie. Numbers are formatted as "accounting", underlines and double underlines should be utilized where applicable.
Best Bikes
Cost of Goods Manufactured TAB INSTRUCTIONS:
For Year Ended December 31, 2017
Direct Materials
Raw materials: beginning $ 167,300 (1) Referencing the information below, prepare the company's 2017 schedule of cost of goods manufactured
Add: purchase of materials 958,000
Raw materials available 1,125,300
Less: Ending raw materials 186,000 Advertising expense $ 27,600 Miscellaneous production costs $ 10,600
Direct materials used $ 939,300 Depreciation expense - Office equip 11,600 Office salaries expense 64,000
Direct Labor 673,800 Depreciation expense - Selling equip 11,000 Raw materials purchases 958,000
Factory overhead Depreciation expense - Factory equip 39,200 Rent expense - Office space 30,000
Factory supervision 102,900 Factory supervision 102,900 Rent expense - Selling space 26,600
Factory supplies used 9,900 Factory supplies used 9,900 Rent expense - Factory building 80,900
Factory utilities 40,000 Factory utilities 40,000 Maintenance expense - Factory equip 39,700
Depreciation Expense- Factory equip 39,200 Direct labor 673,800 Sales 4,475,400
Indirect labor 58,000 Indirect labor 58,000 Sales salaries expense 398,900
Misc Production Costs 10,600
Rent expense - Factory building 80,900 Inventories
Mantenance expense - Factory equip 39,700 Raw materials, December 31, 2016 $ 167,300
Total factory overhead costs 381,200 Raw materials, December 31, 2017 186,000
Total manufacturing costs 1,994,300 Work in process, December 31, 2016 19,000
Work in process, December 31, 2016 19,000 Work in process, December 31, 2017 24,400
Total cost of work in process 2,013,300 Finished goods, December 31, 2016 166,600
Work in process, December 31, 2017 24,400 Finished goods, December 31, 2017 140,900
Cost of Goods Manufactured 1,988,900
Income tax expense $ 252,700
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Income statement

Name
Income Statement Where applicable, all numbers should be cell references or formulas (ie SUM). Full credit will not be given for numbers typed into cells.
Proper formatting should also be applied ie. Numbers are formatted as "accounting", underlines and double underlines should be utilized where applicable.
Best Bikes
Income Statement TAB INSTRUCTIONS:
For Year Ended December 31, 2017
Sales $ 4,475,400
Cost of Goods Sold (1) Referencing the information below, prepare the company's 2017 income statement that reports separate categories
Finished Goods: Beginning 166,600 for (A) selling expenses and (B) general and administrative expenses
Cost of Goods Manufactured 1,988,900
Cost of Goods Available 2,155,500 Advertising expense $ 27,600 Miscellaneous production costs $ 10,600
Less: Finished Goods: End 140,900 Depreciation expense - Office equip 11,600 Office salaries expense 64,000
Cost of Goods Sold 2,014,600 Depreciation expense - Selling equip 11,000 Raw materials purchases 958,000
Gross profit from sales 2,460,800 Depreciation expense - Factory equip 39,200 Rent expense - Office space 30,000
Operating Expenses Factory supervision 102,900 Rent expense - Selling space 26,600
Selling expenses Factory supplies used 9,900 Rent expense - Factory building 80,900
Advertising expense 27,600 Factory utilities 40,000 Maintenance expense - Factory equip 39,700
Depreciation expense - Selling equip 11,000 Direct labor 673,800 Sales 4,475,400
Rent expense - Selling space 26,600 Indirect labor 58,000 Sales salaries expense 398,900
Sales salaries expense 398,900
Total selling expenses 464,100 Inventories
General and administrative expenses Raw materials, December 31, 2016 $ 167,300
Depcreciation expense - Office equip 11,600 Raw materials, December 31, 2017 186,000
Office salaries expense 64,000 Work in process, December 31, 2016 19,000
Rent expense - office space 30,000 Work in process, December 31, 2017 24,400
Total general and administrative expenses 105,600 Finished goods, December 31, 2016 166,600
Total operating expenses 569,700 Finished goods, December 31, 2017 140,900
Income before taxes 1,891,100
Income tax expense (252,700) Income tax expense $ 252,700
Net income $ 1,638,400