Comprehensive problem on unit costs, product costs. Atlanta 0office Equipment manufactures and selis metal shelving. It began operations on January 1, 2017. Costs incurred for 2017 are as follows (V stands for variable; Fstands for fixed): $140,000 V 22,000 V 5,000 V 18,000 V 14,000 F 8,000 V 26,000 F 120,000 V 43,000 F 54,000F Direct materials used Direct manufacturing labor costs Plant energy costs Indirect manufacturing labor costs Indirect manufacturing labor costs Other indirect manufacturing costs Other indirect manufacturing costs Marketing, distribution, and customer-service costs Marketing, distribution, and customer-service costs Administrative costs Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution, and customer-service costs are variable with respect to units sold. Inventory data are as follows: Ending: December 31, 2017 2,300 Ibs O units 7 units Beginning: January 1, 2017 Direct materials O units O units Work in process Finished goods Production in 2017 was 100,000 units. Two pounds of direct materials are used to make one unit of finished product. Revenues in 2017 were $473,200. The selling price per unit and the purchase price per pound of direct materials were stable throughout the year. The company's ending inventory of finished goods is carried at the average unit manufacturing cost for 2017. Finished-goods inventory at December 31, 2017, was $20,970. 1. Calculate direct materials inventory, total cost, December 31, 2017. 2 Calculate finished-goods inventory, total units, December 31, 2017. 3. Calculate selling price in 2017. 4. Calculate operating income for 2017.
Comprehensive problem on unit costs, product costs. Atlanta 0office Equipment manufactures and selis metal shelving. It began operations on January 1, 2017. Costs incurred for 2017 are as follows (V stands for variable; Fstands for fixed): $140,000 V 22,000 V 5,000 V 18,000 V 14,000 F 8,000 V 26,000 F 120,000 V 43,000 F 54,000F Direct materials used Direct manufacturing labor costs Plant energy costs Indirect manufacturing labor costs Indirect manufacturing labor costs Other indirect manufacturing costs Other indirect manufacturing costs Marketing, distribution, and customer-service costs Marketing, distribution, and customer-service costs Administrative costs Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution, and customer-service costs are variable with respect to units sold. Inventory data are as follows: Ending: December 31, 2017 2,300 Ibs O units 7 units Beginning: January 1, 2017 Direct materials O units O units Work in process Finished goods Production in 2017 was 100,000 units. Two pounds of direct materials are used to make one unit of finished product. Revenues in 2017 were $473,200. The selling price per unit and the purchase price per pound of direct materials were stable throughout the year. The company's ending inventory of finished goods is carried at the average unit manufacturing cost for 2017. Finished-goods inventory at December 31, 2017, was $20,970. 1. Calculate direct materials inventory, total cost, December 31, 2017. 2 Calculate finished-goods inventory, total units, December 31, 2017. 3. Calculate selling price in 2017. 4. Calculate operating income for 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Comprehensive problem on unit costs, product costs. Atlanta 0office Equipment manufactures and
selis metal shelving. It began operations on January 1, 2017. Costs incurred for 2017 are as follows (V stands
for variable; Fstands for fixed):
$140,000 V
22,000 V
5,000 V
18,000 V
14,000 F
8,000 V
26,000 F
120,000 V
43,000 F
54,000F
Direct materials used
Direct manufacturing labor costs
Plant energy costs
Indirect manufacturing labor costs
Indirect manufacturing labor costs
Other indirect manufacturing costs
Other indirect manufacturing costs
Marketing, distribution, and customer-service costs
Marketing, distribution, and customer-service costs
Administrative costs
Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution,
and customer-service costs are variable with respect to units sold.
Inventory data are as follows:
Ending: December 31, 2017
2,300 Ibs
O units
7 units
Beginning: January 1, 2017
Direct materials
O units
O units
Work in process
Finished goods
Production in 2017 was 100,000 units. Two pounds of direct materials are used to make one unit of finished
product.
Revenues in 2017 were $473,200. The selling price per unit and the purchase price per pound of direct
materials were stable throughout the year. The company's ending inventory of finished goods is carried at
the average unit manufacturing cost for 2017. Finished-goods inventory at December 31, 2017, was $20,970.
1. Calculate direct materials inventory, total cost, December 31, 2017.
2 Calculate finished-goods inventory, total units, December 31, 2017.
3. Calculate selling price in 2017.
4. Calculate operating income for 2017.
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