The following cost and inventory data are taken from the accounting records of King Company for the year ending 31/12/2021. They relate to 20,000 units produced. Units sold during the year were 18,000 units. Direct labor cost € 50,000 Indirect labor 30,000 Indirect materials cost 3,000 Selling and distribution costs 80,000 Administrative salaries 40,800 Purchases of direct materials 150,000 Other costs and expenses (60% factory / 40% sales and administration) 30,000 Factory Heat, water and power 25,000 Beginning of End of the year the year D/M inventory € 5,000 €12,000 Work in process inventory 9,000 4,000 Finished goods inventory 0 ? Required Prepare the schedule of the cost of goods manufactured What is the cost of producing one unit? King would like a profit of €100 from the sale of each unit. What should be the selling price per unit? Calculate the cost of the closing finished goods inventory Prepare the profit and loss for the year ended 31/12/2021

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Description: The following cost and inventory data are taken from the accounting records of King Company for the year ending 31/12/2021. They relate to 20,000 units produced. Units sold during the year were 18,000 units. Direct labor cost € 50,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following cost and inventory data are taken from the accounting records of King Company for the year ending 31/12/2021. They relate to 20,000 units produced. Units sold during the year were 18,000 units.

Direct labor cost € 50,000
Indirect labor 30,000
Indirect materials cost 3,000
Selling and distribution costs 80,000
Administrative salaries 40,800
Purchases of direct materials 150,000
Other costs and expenses

(60% factory / 40% sales and administration) 30,000

Factory Heat, water and power 25,000

Beginning of End of

the year the year

D/M inventory € 5,000 €12,000

Work in process inventory 9,000 4,000

Finished goods inventory 0 ?

Required

Prepare the schedule of the cost of goods manufactured
What is the cost of producing one unit?
King would like a profit of €100 from the sale of each unit. What should be the selling price per unit?
Calculate the cost of the closing finished goods inventory
Prepare the profit and loss for the year ended 31/12/2021

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