Q1 Your team pulled together the following Cost of Goods Manufactured (COGM) Schedule for the month of July in your Dream Company's second year of operations You produce a line of gummies for your legal drug production company & sales have been steady Direct Materials: Beginning Balance, Raw Materials Purchases of Raw Materials Raw Materials Available for Use (Ending Balance, Raw Materials) Raw Materials Used in Production (Indirect Materials used in prodcution) Direct Materials Used in Production Direct Labour Manufacturing Overhead Indirect Labour Production facility rent Utilities Maintenance for production equipment Cleaning and sanitization services Depreciation on production equipment Total manufactuing overhead cost Total Manufacturing Cost Beginning Work in Process Inventory (Ending Work in Process Inventory) Cost of Goods Manufactured 50,000 165,000 215,000 42,000 173,000 30,100 142,900 143,400 47,500 40,300 30,600 15,300 22,900 15,800 172,400 458,700 79,800 78,400 460,100
Q1 Your team pulled together the following Cost of Goods Manufactured (COGM) Schedule for the month of July in your Dream Company's second year of operations You produce a line of gummies for your legal drug production company & sales have been steady Direct Materials: Beginning Balance, Raw Materials Purchases of Raw Materials Raw Materials Available for Use (Ending Balance, Raw Materials) Raw Materials Used in Production (Indirect Materials used in prodcution) Direct Materials Used in Production Direct Labour Manufacturing Overhead Indirect Labour Production facility rent Utilities Maintenance for production equipment Cleaning and sanitization services Depreciation on production equipment Total manufactuing overhead cost Total Manufacturing Cost Beginning Work in Process Inventory (Ending Work in Process Inventory) Cost of Goods Manufactured 50,000 165,000 215,000 42,000 173,000 30,100 142,900 143,400 47,500 40,300 30,600 15,300 22,900 15,800 172,400 458,700 79,800 78,400 460,100
Chapter4: Preparing And Using Financial Statements
Section: Chapter Questions
Problem 2EP
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solve question using excel and show all work
![Q1 Your team pulled together the following Cost of Goods Manufactured (COGM) Schedule
for the month of July in your Dream Company's second year of operations
You produce a line of gummies for your legal drug production company & sales have been steady
Direct Materials:
Beginning Balance, Raw Materials
Purchases of Raw Materials
Raw Materials Available for Use
(Ending Balance, Raw Materials)
Raw Materials Used in Production
(Indirect Materials used in prodcution)
Direct Materials Used in Production
Direct Labour
Manufacturing Overhead
Indirect Labour
Production facility rent
Utilities
Maintenance for production equipment
Cleaning and sanitization services
Depreciation on production equipment
Total manufactuing overhead cost
Total Manufacturing Cost
Beginning Work in Process Inventory
(Ending Work in Process Inventory)
Cost of Goods Manufactured
50,000
165,000
215,000
42,000
173,000
30,100
142,900
143,400
47,500
40,300
30,600
15,300
22,900
15,800
172,400
458,700
79,800
78,400
460,100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8c28153-e825-4c56-864b-d7c0a22d6c1c%2Fba09066e-2b8d-4a85-9942-b629006f02dc%2Fbpg9vcf_processed.png&w=3840&q=75)
Transcribed Image Text:Q1 Your team pulled together the following Cost of Goods Manufactured (COGM) Schedule
for the month of July in your Dream Company's second year of operations
You produce a line of gummies for your legal drug production company & sales have been steady
Direct Materials:
Beginning Balance, Raw Materials
Purchases of Raw Materials
Raw Materials Available for Use
(Ending Balance, Raw Materials)
Raw Materials Used in Production
(Indirect Materials used in prodcution)
Direct Materials Used in Production
Direct Labour
Manufacturing Overhead
Indirect Labour
Production facility rent
Utilities
Maintenance for production equipment
Cleaning and sanitization services
Depreciation on production equipment
Total manufactuing overhead cost
Total Manufacturing Cost
Beginning Work in Process Inventory
(Ending Work in Process Inventory)
Cost of Goods Manufactured
50,000
165,000
215,000
42,000
173,000
30,100
142,900
143,400
47,500
40,300
30,600
15,300
22,900
15,800
172,400
458,700
79,800
78,400
460,100
![The following information also was shared with the management team:
a)
b)
c)
d)
1)
2)
3)
4)
5)
6)
Required:
Sales of gummies total
Finished Goods
- end of June
- end of July
8)
Advertising
Admin costs
9)
770,800
75,900
71,800
35,000
343,000
For each of those suggestions, provide a risk or problem that might arise
Is the company profitable in July? (show your work)
What spreadsheet function or formula would you use to ensure that
corrections made to the COGM schedule flowed through properly to the
COGS schedule?
7)
if gummies sold in packs of 8, and you sold these # of packs: 64,233
what is the maximum production cost per pack that would still allow
the company to remain profitable?
Show the spreadsheet formula you would use to calculate the
cost of goods sold per 8 pack
if you produced the following # of packs in July
what unit cost would you use to budget for August production?
10) why might that budgeted unit cost not be perfectly accurate for August?
Prepare the Cost of Goods Sold section for your Income Statement
What is the Dream Company's gross margin amount?
What 2 ways would you suggest to increase the gross margin?
66,233](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8c28153-e825-4c56-864b-d7c0a22d6c1c%2Fba09066e-2b8d-4a85-9942-b629006f02dc%2Fkc8q39f_processed.png&w=3840&q=75)
Transcribed Image Text:The following information also was shared with the management team:
a)
b)
c)
d)
1)
2)
3)
4)
5)
6)
Required:
Sales of gummies total
Finished Goods
- end of June
- end of July
8)
Advertising
Admin costs
9)
770,800
75,900
71,800
35,000
343,000
For each of those suggestions, provide a risk or problem that might arise
Is the company profitable in July? (show your work)
What spreadsheet function or formula would you use to ensure that
corrections made to the COGM schedule flowed through properly to the
COGS schedule?
7)
if gummies sold in packs of 8, and you sold these # of packs: 64,233
what is the maximum production cost per pack that would still allow
the company to remain profitable?
Show the spreadsheet formula you would use to calculate the
cost of goods sold per 8 pack
if you produced the following # of packs in July
what unit cost would you use to budget for August production?
10) why might that budgeted unit cost not be perfectly accurate for August?
Prepare the Cost of Goods Sold section for your Income Statement
What is the Dream Company's gross margin amount?
What 2 ways would you suggest to increase the gross margin?
66,233
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