onsider the following information for Sanchez Corporation for the year ended December 31, 2022. Depreciation expense—Administrative office $100,000 Depreciation expense –Plant and equipment 140,000 Property, plant and equipment 6,000,000 Direct labor—Wages 600,000 Direct materials inventory, Dec. 31, 2022 50,000 Direct materials inventory, Jan. 1, 2022 40,000 Direct materials purchases 300,000 Finished goods inventory, Dec. 31, 2022 60,000 Finished goods inventory, Jan. 1, 2022 70,000 Heat, light & power – Plant 80,000 Indirect labor 90,000 Property taxes—Plant 70,000 Sales representative’s salaries 200,000 Cash 500,000 Retained earnings 2,000,000 Supervisor’s salary-Plant 90,000 Supplies—Administrative office 20,000 Supplies—Plant 50,000 Accounts payable 500,000 Accounts receivable 800,000 Work-in-Process inventory, Dec. 31, 2022 50,000 Work-in-Process inventory, Jan. 1, 2022 40,000 Required: Determine the cost of goods manufactured and the cost of goods sold for 2022. If 200,000 units were sold, what is the cost of goods manufactured per unit? How much would Sales for 2022 have been to generate an operating income of $200,000?
Consider the following information for Sanchez Corporation for the year ended December 31, 2022.
Depreciation expense –Plant and equipment 140,000
Property, plant and equipment 6,000,000
Direct labor—Wages 600,000
Direct materials inventory, Dec. 31, 2022 50,000
Direct materials inventory, Jan. 1, 2022 40,000
Direct materials purchases 300,000
Finished goods inventory, Dec. 31, 2022 60,000
Finished goods inventory, Jan. 1, 2022 70,000
Heat, light & power – Plant 80,000
Indirect labor 90,000
Property taxes—Plant 70,000
Sales representative’s salaries 200,000
Cash 500,000
Supervisor’s salary-Plant 90,000
Supplies—Administrative office 20,000
Supplies—Plant 50,000
Accounts payable 500,000
Accounts receivable 800,000
Work-in-Process inventory, Dec. 31, 2022 50,000
Work-in-Process inventory, Jan. 1, 2022 40,000
Required:
- Determine the cost of goods manufactured and the cost of goods sold for 2022.
- If 200,000 units were sold, what is the cost of goods manufactured per unit?
- How much would Sales for 2022 have been to generate an operating income of $200,000?
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