TURBO HOMEWORK Turbo Company, a manufacturing firm, produces a single product. The following information has been taken from the company's production, sales, and cost records for the just completed year: TURBO COMPANY Production in units Sales in units Ending finished goods inventory in units Sales in dollars Costs: Advertising Direct labor Indirect labor Raw materials purchased Building rent (80% Factory) Utilities, factory Royalty paid for use of patent, $1 per unit produced (Classify as MOH) Maintenance, factory Rent for special production equipment, $6,000 per year plus $0.10 per unit produced Selling and administrative salaries Other factory overhead costs Other selling and administrative expenses Inventories: Raw materials Work in progress Finished goods Selling price per unit Check figure: (1) Cost of goods manufactured 1. Compute the cost of goods manufactured for the year. 2. Compute the following: 30,000 ? ? $650,000 3. Prepare an income statement for the year. $50,000 80,000 60,000 160,000 50,000 35,000 Show Transcribed Text ? 25,000 ? 140,000 11,000 20,000 Beginning of Year $20,000 30,000 $25 The finished goods inventory is being carried at the average unit production cost for the year. The selling price of the product is $25 per unit. $450,000 End of Year $10,000 40,000 a. The number of units in the finished goods inventory at the end of the year. b. The cost of the units in the finished goods inventory at the end of the year. lease show work and give an explanation of how you do the process. Thanks!
TURBO HOMEWORK Turbo Company, a manufacturing firm, produces a single product. The following information has been taken from the company's production, sales, and cost records for the just completed year: TURBO COMPANY Production in units Sales in units Ending finished goods inventory in units Sales in dollars Costs: Advertising Direct labor Indirect labor Raw materials purchased Building rent (80% Factory) Utilities, factory Royalty paid for use of patent, $1 per unit produced (Classify as MOH) Maintenance, factory Rent for special production equipment, $6,000 per year plus $0.10 per unit produced Selling and administrative salaries Other factory overhead costs Other selling and administrative expenses Inventories: Raw materials Work in progress Finished goods Selling price per unit Check figure: (1) Cost of goods manufactured 1. Compute the cost of goods manufactured for the year. 2. Compute the following: 30,000 ? ? $650,000 3. Prepare an income statement for the year. $50,000 80,000 60,000 160,000 50,000 35,000 Show Transcribed Text ? 25,000 ? 140,000 11,000 20,000 Beginning of Year $20,000 30,000 $25 The finished goods inventory is being carried at the average unit production cost for the year. The selling price of the product is $25 per unit. $450,000 End of Year $10,000 40,000 a. The number of units in the finished goods inventory at the end of the year. b. The cost of the units in the finished goods inventory at the end of the year. lease show work and give an explanation of how you do the process. Thanks!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
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Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
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Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:TURBO HOMEWORK
Turbo Company, a manufacturing firm, produces a single product. The following information has been taken from
the company's production, sales, and cost records for the just completed year:
TURBO COMPANY
Production in units
Sales in units
Ending finished goods inventory in units
Sales in dollars
Costs:
Advertising
Direct labor
Indirect labor
Raw materials purchased
Building rent (80% Factory)
Utilities, factory
Royalty paid for use of patent, $1
per unit produced (Classify as MOH)
Maintenance, factory
Rent for special production equipment, $6,000 per
year plus $0.10 per unit produced
Selling and administrative salaries
Other factory overhead costs
Other selling and administrative expenses
Inventories:
Raw materials
Work in progress
Finished goods
Selling price per unit
Check figure:
(1) Cost of goods manufactured
I. Compute the cost of goods manufactured for the year.
2. Compute the following:
30,000
?
?
$650,000
3. Prepare an income statement for the year.
$50,000
80,000
60,000
160,000
50,000
35,000
Show Transcribed Text
?
25,000
?
140,000
11,000
20,000
Beginning
of Year
End of
Year
$20,000 $10,000
30,000
40,000
0
?
The finished goods inventory is being carried at the average unit production cost for the year. The selling price of
the product is $25 per unit.
$25
$450,000
a. The number of units in the finished goods inventory at the end of the year.
b. The cost of the units in the finished goods inventory at the end of the year.
Please show work and give an explanation of how you do the process. Thanks!
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