d) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2020, clearly showing total manufacturing costs & total manufacturing costs to account for. e) Prepare an income statement for Bubba Manufacturing for the year ended June 30, 2020, clearly showing cost of goods sold. f) During the year, Bubba Manufacturing Company produced 4,000 units of product. What was the production cost of each unit? g) How does the format of the income statement for a manufacturing entity differ from the income statement of a merchandising entity?
Bubba Manufacturing Company provided the following information for the fiscal year to June 30, 2020:
|
Inventories |
01/07/2019 |
30/06/2020 |
|
Direct Materials |
$72,000 |
$65,000 |
|
Work-in-Process |
107,000 |
128,000 |
|
Finished Goods |
149,500 |
141,700 |
Other information:
|
Office cleaner’s wages |
4,500 |
|
Sales Revenue |
1,031,000 |
|
Raw materials purchased |
235,000 |
|
Factory wages |
239,700 |
|
Indirect materials |
23,500 |
|
Delivery truck driver’s wages |
15,400 |
|
Indirect labor |
9,500 |
|
|
32,000 |
|
Insurance 1 |
60,000 |
|
Depreciation on delivery truck |
7,250 |
|
Utilities 2 |
118,750 |
|
Administrative salaries |
41,250 |
|
Special Design Costs |
5,000 |
|
Selling expenses |
9,000 |
|
Sales Commission |
2% of gross profit |
1 Of the total insurance, 66⅔% relates to the factory facilities & 33⅓% relates to general
& administrative costs.
2 Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to the office area.
- d) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2020, clearly showing total
manufacturing costs & total manufacturing costs to account for. - e) Prepare an income statement for Bubba Manufacturing for the year ended June 30, 2020, clearly showing cost of goods sold.
- f) During the year, Bubba Manufacturing Company produced 4,000 units of product. What was the production cost of each unit?
- g) How does the format of the income statement for a manufacturing entity differ from the income statement of a merchandising entity?
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