Question

This company reports only total factory overhead on the schedule of cost of goods manufactured and attaches a separate schedule listing individual overhead costs. For each of the following account balances for a manufacturing company, select yes in the appropriate column indicating that it appears on the balance sheet, the income statement, the schedule of cost of goods manufactured, and/or a detailed listing of factory overhead costs. Assume that the income statement shows the calculation of the cost of goods sold and the schedule of the cost of goods manufacturers shows only the total amount of factory overhead.

Account Balance Sheet Income Statement Schedule of COGM Overhead Report
Accounts receivable
Computer supplies used (office)
Beginning finished goods inventory
Beginning work in process inventory
Cash
Depreciation expense - Factory building
Depreciation expense - Office building
Direct Labor
Ending work in process inventory
Ending raw materials inventory
Factory maintenance wages
Income taxes
Insurance on factory building
Property taxes on factory building
Raw materials purchases
Sales

Answer 1

balance sheet (permanent accounts):

• Accounts receivable ⇒ BALANCE SHEET
• Cash ⇒ BALANCE SHEET

income statement (temporary accounts):

• Computer supplies used (office) ⇒ INCOME STATEMENT
• Depreciation expense - Office building ⇒ INCOME STATEMENT
• Income taxes ⇒ INCOME STATEMENT
• Sales ⇒ INCOME STATEMENT

cost of goods manufactured (temporary accounts):

• Beginning finished goods inventory ⇒ SCHEDULE OF COST OF GOODS MANUFACTURED
• Beginning work in process inventory ⇒ SCHEDULE OF COST OF GOODS MANUFACTURED
• Direct Labor ⇒ SCHEDULE OF COST OF GOODS MANUFACTURED
• Ending work in process inventory ⇒ SCHEDULE OF COST OF GOODS MANUFACTURED
• Ending raw materials inventory ⇒ SCHEDULE OF COST OF GOODS MANUFACTURED
• Raw materials purchases ⇒ SCHEDULE OF COST OF GOODS MANUFACTURED

overhead report (temporary accounts):

• Depreciation expense - Factory building ⇒ OVERHEAD REPORT
• Factory maintenance wages ⇒ OVERHEAD REPORT
• Insurance on factory building ⇒ OVERHEAD REPORT
• Property taxes on factory building ⇒ OVERHEAD REPORT