JOJO Company is a metal- and woodcutting manufacturer, selling products to the home construction market. Consider the following data for 2011: Sandpaper $ 2,000 Materials-handling costs 70,000 Lubricants and coolants 5,000 Miscellaneous indirect manufacturing labor 40,000 Direct manufacturing labor 300,000 Direct materials inventory Jan. 1, 2011 40,000 Direct materials inventory Dec. 31, 2011 50,000 Finished goods inventory Jan. 1, 2011 100,000 Finished goods inventory Dec. 31, 2011 150,000 Work-in-process inventory Jan
- JOJO Company is a metal- and woodcutting manufacturer, selling products to the home construction market. Consider the following data for 2011:
Sandpaper $ 2,000
Materials-handling costs 70,000
Lubricants and coolants 5,000
Miscellaneous indirect manufacturing labor 40,000
Direct manufacturing labor 300,000
Direct materials inventory Jan. 1, 2011 40,000
Direct materials inventory Dec. 31, 2011 50,000
Finished goods inventory Jan. 1, 2011 100,000
Finished goods inventory Dec. 31, 2011 150,000
Work-in-process inventory Jan. 1, 2011 10,000
Work-in-process inventory Dec. 31, 2011 14,000
Plant-leasing costs 54,000
Property taxes on plant equipment 4,000
Fire insurance on plant equipment 3,000
Direct materials purchased 460,000
Revenues 1,360,000
Marketing promotions 60,000
Marketing salaries 100,000
Distribution costs 70,000
Customer-service costs 100,000
- Prepare an income statement with a separate supporting schedule of cost of goods Required manufactured. For all manufacturing items, classify costs as direct costs or indirect costs and indicate by V or F whether each is basically a variable cost or a fixed cost (when the cost object is a product unit). If in doubt, decide on the basis of whether the total cost will change substantially over a wide range of units produced.
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