Part 1 Canine Nutritionists is a manufacturer of grains for dogs. The following information pertains to operations during the 2021 calendar year. Inventory Data: 1/1/2021 Purchases 31/12/2021 Raw Materials $750,000 $4,330,000 $807,000 Indirect Materials 55,000 320,000 Work in Progress 924,000 Finished Goods 1,142,600 The following additional information is also available: Sales Revenue Direct Factory Labor Indirect Factory Labor Total Depreciation ¹ Total Utilities 2 Distribution & Customer Service Costs Insurance on Plant & Equipment Property Taxes 3 Administrative Wages & Salaries Advertising Expenses Sales Commission n/a n/a 71,500 814,750 1,720,200 $14,776,000 4,371,000 1,232,250 400,000 525,000 76,800 585,000 90,000 1,076,000 57,700 5% of Sales Revenue Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and administrative costs. 2 Of the total utilities, 75% relates to manufacturing and 25% relates to general and administrative costs. 3 The property taxes should be shared: 85% manufacturing & 15% general & administrative costs.
Part 1 Canine Nutritionists is a manufacturer of grains for dogs. The following information pertains to operations during the 2021 calendar year. Inventory Data: 1/1/2021 Purchases 31/12/2021 Raw Materials $750,000 $4,330,000 $807,000 Indirect Materials 55,000 320,000 Work in Progress 924,000 Finished Goods 1,142,600 The following additional information is also available: Sales Revenue Direct Factory Labor Indirect Factory Labor Total Depreciation ¹ Total Utilities 2 Distribution & Customer Service Costs Insurance on Plant & Equipment Property Taxes 3 Administrative Wages & Salaries Advertising Expenses Sales Commission n/a n/a 71,500 814,750 1,720,200 $14,776,000 4,371,000 1,232,250 400,000 525,000 76,800 585,000 90,000 1,076,000 57,700 5% of Sales Revenue Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and administrative costs. 2 Of the total utilities, 75% relates to manufacturing and 25% relates to general and administrative costs. 3 The property taxes should be shared: 85% manufacturing & 15% general & administrative costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1) Calculate the Raw material used by Canine Nutritionists.
2) Calculate the indirect materials used by Canine Nutritionist.
3) What is the total manufacturing
4) Determine the prime cost & Conversion cost of the product manufactured.
5) Prepare a schedule of cost of goods manufactured for the year ended December 31, 2021, clearly showing total manufacturing cost & total
Transcribed Image Text:Part 1
Canine Nutritionists is a manufacturer of grains for dogs. The following information pertains to operations during
the 2021 calendar year.
Inventory Data:
Raw Materials
Indirect Materials
Work in Progress
Finished Goods
The following additional information is also available:
Sales Revenue
Direct Factory Labor
Indirect Factory Labor
Total Depreciation ¹
Total Utilities 2
1/1/2021 Purchases 31/12/2021
$750,000 $4,330,000 $807,000
55,000 320,000
924,000
1,142,600
Distribution & Customer Service Costs
Insurance on Plant & Equipment
Property Taxes 3
Administrative Wages & Salaries
Advertising Expenses
Sales Commission
n/a
n/a
71,500
814,750
1,720,200
$14,776,000
4,371,000
1,232,250
400,000
525,000
76,800
585,000
90,000
1,076,000
57,700
5% of Sales Revenue
¹ Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and
administrative costs.
2 Of the total utilities, 75% relates to manufacturing and 25% relates to general and administrative costs.
³ The property taxes should be shared: 85% manufacturing & 15% general & administrative costs.
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Step 1 Introduction
VIEWStep 2 Part 1) Computation of Raw materials used
VIEWStep 3 Part 2) Computation of Indirect materials used
VIEWStep 4 Part 3) Computation of Manufacturing overhead
VIEWStep 5 Part 4) Computation of Prime cost & conversion cost
VIEWStep 6 Part 5) Computation of cost of goods manufactured
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What is the unit product cost if Canine Nutritionists manufactured 18,500 bags of grains for the year?
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