BCD Company makes industrial cleaning solvents. Different chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. BDC provided the following information for last year (2020): Raw materials purchases P 250,000 Direct labor 140,000 Depreciation-factory equipment 45,000 Depreciation-factory building 30,000 Depreciation-headquarters building 50,000 Factory insurance 15,000 Property taxes: Factory 20,000 Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 1,800 Administrative salaries 150,000 Indirect labor salaries 156,000 Sales office salaries 90,000 Beginning balance, Raw materials 124,000 Beginning balance, Work-in-process 124,000 Beginning balance, Finished goods 84,000 Ending balance, Raw materials 102,000 Ending balance, Work-in-process 130,000 Ending balance, Finished goods 82,000 Last year, BCD completed 100,000 units. Sales revenue equaled P 1,200,000, and BCD paid a sales commission of 5% of sales. Required: Calculate the direct materials used in production for last year. Calculate total prime cost. Calcukate total conversion
BCD Company makes industrial cleaning solvents. Different chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. BDC provided the following information for last year (2020):
|
Raw materials purchases |
P 250,000 |
|
Direct labor |
140,000 |
|
|
45,000 |
|
Depreciation-factory building |
30,000 |
|
Depreciation-headquarters building |
50,000 |
|
Factory insurance |
15,000 |
|
Property taxes: |
|
|
Factory |
20,000 |
|
Headquarters |
18,000 |
|
Utilities for factory |
34,000 |
|
Utilities for sales office |
1,800 |
|
Administrative salaries |
150,000 |
|
Indirect labor salaries |
156,000 |
|
Sales office salaries |
90,000 |
|
Beginning balance, Raw materials |
124,000 |
|
Beginning balance, Work-in-process |
124,000 |
|
Beginning balance, Finished goods |
84,000 |
|
Ending balance, Raw materials |
102,000 |
|
Ending balance, Work-in-process |
130,000 |
|
Ending balance, Finished goods |
82,000 |
Last year, BCD completed 100,000 units. Sales revenue equaled P 1,200,000, and BCD paid a sales commission of 5% of sales.
Required:
- Calculate the direct materials used in production for last year.
- Calculate total prime cost.
- Calcukate total conversion cost.
- Prepare a cost of goods manufactured statement for last year. Calculate the unit product cost.
- Prepare an income statement for last year.
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