Sheet1Question No. 16-5Beginning merchandise inventory$7,900Add: Purchases:Purchases$39,000Add: Freight In$2,900$41,900Cost of goods avaialable for sale$49,800Less: Ending merchandise inventory($4,900)Cost of goods sold$44,900Question No. 16-21Boswell, Inc.Laura's BakeryRustic GearBeginning work in process inventory$10,500$40,500$2,200Direct material used$14,200$35,200Direct Labor$10,800$35,200$1,400Manufacturing overhead$20,300$10,500$300Total manufacturing cost incurred during the year$45,300$121,400Total manufacturing cost to account for$55,800$161,900$7,400Ending work in process($4,600)($25,900)($2,500)

Cost of goods manufactured$51,200$136,000$4,900

P 16-31A

Part 1

Fido TreatsCost of goods manufacturedFor the year ended December 31, 2014

Work in process - beginning$0Raw material - beginning$13,400Add: Raw materials purchases$33,000Cost of raw material avaialble for use$46,400Raw material - ending($9,500)Cost of material used$36,900Direct labor$22,000Manufacturing Overhead:Plant janitorial services$800Utilities for plant$1,600Rent on plant$13,000$15,400Total manufacturing cost incurred during the year$74,300Total manufacturing cost to account for$74,300Ending work in process($2,000)

Cost of goods manufactured$72,300

Part 2

Fido TreatsIncome statementFor the year ended December 31, 2014

Sales revenue$109,000Cost of goods sold:Finished goods - beginning$0Add: Cost of goods manufactured$72,300Cost of goods available for sale$72,300Finished goods - ending($5,300)Cost of goods sold$67,000Gross Profit$42,000Less: Selling and administrative expensesSales salaries$5,000Delivery cost$1,700Customer service hotline costs$1,400$8,100

Operating income$33,900

Part 3

For the merchandiser company, there is no cost of goods manufactured as the goods are purchased from the market. The cost of the goods sold consist of the finished goods with the purchases and all of the other items in the income statement are the same.

Part 4

Cost of goods manufactured$72,300Units produced18,075Unit product cost$4.00