PROBLEM 2-3 COST OF GOODS MANUFACTURED AND, SOLD STATEMENT AND NET INCOME OR LOSS The Parrish Fertilizer Company produces various types of fertilizer. No beginning units process or finished units were on hand on January 1, 19X3; 30, 000 finished units were hand on December 31, 19X3, and 95,000 units were sold during the year. There were 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 cos 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 e Conversion costs f Period costs Selling expenses were $80,000; general and administrative expenses were $50,000. d Prime costs a Cost of goods manufactured c Unit cost Required: Compute the following: b Total cost
PROBLEM 2-3
COST OF GOODS MANUFACTURED AND, SOLD STATEMENT AND NET INCOME OR LOSS
The Parrish Fertilizer Company produces various types of fertilizer. No beginning units process or finished units were on hand on January 1, 19X3; 30, 000 finished units were hand on December 31, 19X3, and 95,000 units were sold during the year. There were 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 cos other than indirect materials and indirect labor, were the following:
Heat, light and power
Property taxes.
Repairs and maintenance..
$115,000 78,000
65,000
42,000
e Conversion costs f Period costs
Selling expenses were $80,000; general and administrative expenses were $50,000.
d Prime costs
a Cost of goods manufactured
c Unit cost
Required: Compute the following:
b Total cost
Trending now
This is a popular solution!
Step by step
Solved in 2 steps