2. Prepare an income statement.Cost of goods sold:PRECIOUS PRODUCTION LIMITEDIncome StatementFor the quarter ended xxxxSelling and administrative expenses:3. Assume that the company produced the equivalent of 18,000 units of product during the quarter. What was the average cost perunit for direct labour? What was the average cost per unit for factory insurance? (Round your answers to 2 decimal places.)Direct labourInsuranceAverage costper unitper unit The following information pertains to the most recent quarter at Precious Production Limited.Purchases of raw materialsRaw materials inventory, beginningRaw materials inventory, endingDepreciation, factoryInsurance, factoryDirect labourMaintenance, factoryAdministrative expensesSalesUtilities, factorySupplies, factorySelling expensesIndirect labour.Work in process inventory, beginningWork in process inventory, endingFinished goods inventory, beginningFinished goods inventory, endingRequired:1. Prepare a schedule of cost of goods manufactured.PRECIOUS PRODUCTION$388,50047,60077,500215,50021,900253,300127,600295, 2002,256,000117,5004,190337,100273,30028,950123,80042,850171,400

An income statement refers to a statement showing the details of income and expenditure for the…

Answered: 2. Prepare an income statement. Cost of…

2. Prepare an income statement. Cost of goods sold: PRECIOUS PRODUCTION LIMITED Income Statement For the quarter ended xxxx

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 14MC: In a job order cost system, factory wage expense is debited to which account? A. raw materials...

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Required information [The following information applies to the questions displayed below.] The following data is provided for Garcon Company and Pepper Company for the year ended December 31. Finished goods inventory, beginning Work in process inventory, beginning Raw materials inventory, beginning Rental cost on factory equipment Direct labor Finished goods inventory, ending Work in process inventory, ending Raw materials inventory, ending Factory utilities General and administrative expenses Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses Sales Cash Accounts receivable, net Garcon Company $ 12,700 16,800 8,700 30,250 24,600 20,600 24,100 Required 1 5,800 12,600 24,500 14,900 5,660 40,000 Required 2 59, 200 283,890 34,000 14,200 Pepper Company $ 19,300 22,800 12,600 23,500 43,800 13,600 16,400 7,600 14,750 53,000 14,400 2,250 67,500 48,700 1. Compute the total prime costs for both Garcon Company and Pepper Company. 2. Compute the total conversion…
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