COST OF GOODS MANUFACTURED AND SOLD STATEMENT AND NET INCOMEOR LOSSPROBLEM 2-3The Parrish Fertilizer Company produces various types of fertilizer. No beginning units inprocess or finished units were on hand on January 1, 19X3; 30,000 finished units were onhand on December 31, 19X3, and 95,000 units were sold during the year. There were nounits in work-in-process inventory on December 31, 19X3. The materials put into produç-tion cost $300,000; 75% were direct materials. There was no beginning or ending materialsinventory. Labor costs were $350,000; 40% was for indirect labor. Factory overhead costs,other than indirect materials and indirect labor, were the following:Heat, light and powerDepreciation....Property taxesRepairs and maintenance..$115,00078,00065,00042,000..............Selling expenses were $80,000; general and administrative expenses were $50,000.Requlred: Compute the following:a Cost of goods manufacturedb Total costc Unit costd Prime costse Conversion costsf Period costs

Name: COST OF GOODS MANUFACTURED AND SOLD STATEMENT AND NET INCOMEOR LOSSPR
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Description: COST OF GOODS MANUFACTURED AND SOLD STATEMENT AND NET INCOMEOR LOSSPROBLEM 2-3The Parrish Fertilizer Company produces various types of fertilizer. No beginning units inprocess or finished units were on hand on January 1, 19X3; 30,000 finished units

The product cost is distinguished as prime cost and conversion cost.

Business

Accounting

COST OF GOODS MANUF OR LOSS The Parrish Fertilizer Company produces various types of fertilizer. No beginning units im process or finlshed units were on hand on January 1, 19X3; 30,000 finished units were om hand on December 31, 19X3, and 95,000 units were sold during the year. There were nc units in work-in-process inventory on December 31, 19X3. The materials put into produc tion cost $300,000; 75% were direct materials. There was no beginning or ending material inventory. Labor costs were $350,000; 40% was for indirect labor. Factory overhead costs other than indirect materials and indirect labor, were the following: Heat, light and power Depreciation... Property taxes Repairs and maintenance. $115,000 78,000 65,000 42,000 ....... ..... ..... Selling expenses were $80,000; general and administrative expenses were $50,000. Requlred: Compute the following: a Cost of goods manufactured b Total cost c Unit cost d Prime costs e Conversion costs f Period costs

COST OF GOODS MANUF OR LOSS The Parrish Fertilizer Company produces various types of fertilizer. No beginning units im process or finlshed units were on hand on January 1, 19X3; 30,000 finished units were om hand on December 31, 19X3, and 95,000 units were sold during the year. There were nc units in work-in-process inventory on December 31, 19X3. The materials put into produc tion cost $300,000; 75% were direct materials. There was no beginning or ending material inventory. Labor costs were $350,000; 40% was for indirect labor. Factory overhead costs other than indirect materials and indirect labor, were the following: Heat, light and power Depreciation... Property taxes Repairs and maintenance. $115,000 78,000 65,000 42,000 ....... ..... ..... Selling expenses were $80,000; general and administrative expenses were $50,000. Requlred: Compute the following: a Cost of goods manufactured b Total cost c Unit cost d Prime costs e Conversion costs f Period costs

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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