Selected account balance for the year ended Dec 31 are provided below for the Big Company: Description “$” Selling and Admin Salaries 110,000 Insurance, Factory 8,000 Utilities, Factory 45,000 Purchases of Raw Material 290,000 Indirect Labor 60,000 Direct Labor ? Advertising Expense 80,000 Cleaning Supplies, Factory 7,000 Sales Commission 50,000 Rent, Factory Building 120,000 Maintenance, Factory 30,000 Inventory balances at the beginning and end of the year were as follows: Description “$” Beginning of the Year “$” End of the Year Raw Material 40,000 10,000 Work in Process ? 35,000 Finish Goods 50,000 ? The total manufacturing costs for the year were $ 683,000; the goods available for sale totaled $ 740,000; and cost of goods sold totaled $ 660,000. 1. Prepare a schedule of cost of goods manufactured and cost of goods sold section of the company’s income statement for the year. 2. The company produced the equivalent of 40,000 units during the year; compute the average cost per unit for direct material used and the average cost per unit for the rent on factory building
Selected account balance for the year ended Dec 31 are provided below for the Big Company:
|
Description |
“$” |
|
Selling and Admin Salaries |
110,000 |
|
Insurance, Factory |
8,000 |
|
Utilities, Factory |
45,000 |
|
Purchases of Raw Material |
290,000 |
|
Indirect Labor |
60,000 |
|
Direct Labor |
? |
|
Advertising Expense |
80,000 |
|
Cleaning Supplies, Factory |
7,000 |
|
Sales Commission |
50,000 |
|
Rent, Factory Building |
120,000 |
|
Maintenance, Factory |
30,000 |
Inventory balances at the beginning and end of the year were as follows:
|
Description |
“$” Beginning of the Year |
“$” End of the Year |
|
Raw Material |
40,000 |
10,000 |
|
Work in Process |
? |
35,000 |
|
Finish Goods |
50,000 |
? |
The total
1. Prepare a schedule of cost of goods manufactured and cost of goods sold section of the company’s income statement for the year.
2. The company produced the equivalent of 40,000 units during the year; compute the average cost per unit for direct material used and the average cost per unit for the rent on factory building
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