Problem 13-30 (Algo) Cost of goods manufactured, cost of goods sold, and income statement LO 4, 5, 7 I JUST NEED HELP WITH PART D!! PLEASE!! Morrison & Company incurred the following costs during August: Raw materials purchased $ 44,060 Direct labor ($12.4 per hour) 54,684 Manufacturing overhead (actual) 90,230 Selling expenses 31,790 Administrative expenses 14,380 Interest expense 6,231 Manufacturing overhead is applied on the basis of $20 per direct labor hour. Assume that overapplied or underapplied overhead is transferred to cost of goods sold only at the end of the year. During the month, 4,080 units of product were manufactured and 4,470 units of product were sold. On August 1 and August 31, Morrison & Company carried the following inventory balances: August 1 August 31 Raw materials $ 19,800 $ 17,700 Work in process 52,700 56,900 Finished goods 41,300 23,631 Required: Prepare a statement of cost of goods manufactured for the month of August and calculate the average cost per unit of product manufactured. Calculate the cost of goods sold during August. Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements? Prepare a traditional (absorption) income statement for Morrison & Company for the month of August. Assume that sales for the month were $284,100 and the company's effective income tax rate was 30%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Problem 13-30 (Algo) Cost of goods manufactured, cost of goods sold, and income statement LO 4, 5, 7

I JUST NEED HELP WITH PART D!! PLEASE!!

Morrison & Company incurred the following costs during August:


Raw materials purchased	$	44,060
Direct labor ($12.4 per hour)		54,684
Manufacturing overhead (actual)		90,230
Selling expenses		31,790
Administrative expenses		14,380
Interest expense		6,231

Manufacturing overhead is applied on the basis of $20 per direct labor hour. Assume that overapplied or underapplied overhead is transferred to cost of goods sold only at the end of the year. During the month, 4,080 units of product were manufactured and 4,470 units of product were sold. On August 1 and August 31, Morrison & Company carried the following inventory balances:

	August 1	August 31
Raw materials	$	19,800	$	17,700
Work in process		52,700		56,900
Finished goods		41,300		23,631

Required:

Prepare a statement of cost of goods manufactured for the month of August and calculate the average cost per unit of product manufactured.
Calculate the cost of goods sold during August.
Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements?
Prepare a traditional (absorption) income statement for Morrison & Company for the month of August. Assume that sales for the month were $284,100 and the company's effective income tax rate was 30%.

Req A1
Req A2 to C2
Req D
Prepare a traditional (absorption) income statement for Morrison & Company for the month of August. Assume that sales for
the month were $284,100 and the company's effective income tax rate was 30%. (Do not round intermediate calculations.)
MORRISON & COMPANY
Absorption Income Statement
For the month of August
Sales
Cost of goods sold
Gross profit
<
$
$
$
284,100
$
284, 100
284,100
$ 284,100
284, 100
Req A2 to C2
Req D >

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions