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Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Raw materials purchases $280,000 Direct labor 140,000 Depreciation on factory equipment 45,000 Depreciation on factory building 30,000 Depreciation on headquarters building 60,000 Factory insurance 15,000 Property taxes:       Factory 20,000     Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 2,400 Administrative salaries 150,000 Indirect labor salaries 159,000 Sales office salaries 90,000 Beginning balance, raw materials 121,000 Beginning balance, work in process 124,000 Beginning balance, finished goods 84,000 Ending balance, raw materials 105,000 Ending balance, work in process 130,000 Ending balance, finished goods 79,000 Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.

Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Raw materials purchases $280,000 Direct labor 140,000 Depreciation on factory equipment 45,000 Depreciation on factory building 30,000 Depreciation on headquarters building 60,000 Factory insurance 15,000 Property taxes:       Factory 20,000     Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 2,400 Administrative salaries 150,000 Indirect labor salaries 159,000 Sales office salaries 90,000 Beginning balance, raw materials 121,000 Beginning balance, work in process 124,000 Beginning balance, finished goods 84,000 Ending balance, raw materials 105,000 Ending balance, work in process 130,000 Ending balance, finished goods 79,000 Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year:

Raw materials purchases $280,000
Direct labor 140,000
Depreciation on factory equipment 45,000
Depreciation on factory building 30,000
Depreciation on headquarters building 60,000
Factory insurance 15,000
Property taxes:  
    Factory 20,000
    Headquarters 18,000
Utilities for factory 34,000
Utilities for sales office 2,400
Administrative salaries 150,000
Indirect labor salaries 159,000
Sales office salaries 90,000
Beginning balance, raw materials 121,000
Beginning balance, work in process 124,000
Beginning balance, finished goods 84,000
Ending balance, raw materials 105,000
Ending balance, work in process 130,000
Ending balance, finished goods 79,000

Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.

 

6. Prepare an income statement for last year. Show the percentage of sales that each line item represents. When required, round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35. Brody Company Income Statement For Last Year Percent % % Less: Operating expenses % % %
Transcribed Image Text:6. Prepare an income statement for last year. Show the percentage of sales that each line item represents. When required, round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35. Brody Company Income Statement For Last Year Percent % % Less: Operating expenses % % %
4. Prepare a cost of goods manufactured statement for last year. Brody Company Statement of Cost of Goods Manufactured For Last Year Total manufacturing cost Feedback Calculate the unit product cost. If required, round your answer to the nearest cent. Foedback 5. Prepare a cost of goods sold statement for last year. Brody Company Statement of Cost of Goods Sold For Last Year
Transcribed Image Text:4. Prepare a cost of goods manufactured statement for last year. Brody Company Statement of Cost of Goods Manufactured For Last Year Total manufacturing cost Feedback Calculate the unit product cost. If required, round your answer to the nearest cent. Foedback 5. Prepare a cost of goods sold statement for last year. Brody Company Statement of Cost of Goods Sold For Last Year
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