Cost Assignment Methods
Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year:
Raw materials purchases | $250,000 |
Direct labor | 140,000 |
Depreciation on factory equipment | 45,000 |
Depreciation on factory building | 30,000 |
Depreciation on headquarters building | 45,000 |
Factory insurance | 15,000 |
Property taxes: | |
Factory | 20,000 |
Headquarters | 18,000 |
Utilities for factory | 34,000 |
Utilities for sales office | 2,400 |
Administrative salaries | 150,000 |
Indirect labor salaries | 153,000 |
Sales office salaries | 90,000 |
Beginning balance, raw materials | 127,000 |
Beginning balance, work in process | 124,000 |
Beginning balance, finished goods | 84,000 |
Ending balance, raw materials | 105,000 |
Ending balance, work in process | 130,000 |
Ending balance, finished goods | 79,000 |
Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.
6. Prepare an income statement for last year. Show the percentage of sales that each line item represents. When required, round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35.
Brody Company | ||
Income Statement | ||
For Last Year | ||
Percent | ||
$ | % | |
% | ||
$ | % | |
Less: Operating expenses | ||
% | ||
% | ||
$ | % |
Brody Company | ||
Income Statement | ||
Percentage | ||
Sales | $1,200,000 | 100.00% |
Cost of goods sold | $708,000 | 59.00% |
Gross Margin | $492,000 | 41.00% |
Less: Operating expenses | ||
Selling expense | $152,400 | 12.70% |
Administrative expense | $213,000 | 17.75% |
Net Operating Income | $126,600 | 10.55% |
Working | ||
Calculation of COGS | ||
Beginning raw materials inventory | $127,000 | |
Add: Purchases of raw materials | $250,000 | |
Total direct materials available | $377,000 | |
Less: ending inventory of raw materials | $105,000 | |
Total raw materials used in production | $272,000 | |
Add: Direct Labor | $140,000 | |
Add: Manufacturing overhead | $297,000 | |
Total manufacturing costs | $709,000 | |
Add: beginning work in process | $124,000 | |
$833,000 | ||
Less: ending work in process | $130,000 | |
Cost of goods manufactured | $703,000 | |
Add: Beginning finished goods inventory | $84,000 | |
Finished goods available | $787,000 | |
Less: Ending finished goods inventory | $79,000 | |
Cost of goods sold | $708,000 | |
Calculation of selling expense | ||
Utilities, sales office | $2,400 | |
Sales office salaries | $90,000 | |
Sales commissions ($1,200,000 ×0.05) | $60,000 | |
Selling expense | $152,400 | |
Calculation of administrative expense | ||
Depreciation on headquarters building | $45,000 | |
Property taxes, headquarters | $18,000 | |
Administrative salaries | $150,000 | |
Administrative expense | $213,000 | |
Cost Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed...
Cost Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Raw materials purchases $280,000 Direct labor 140,000 Depreciation on factory equipment 45,000 Depreciation on factory building 30,000 Depreciation on headquarters building 60,000 Factory insurance 15,000 Property taxes: Factory 20,000 Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 1,800 Administrative salaries 150,000 Indirect labor salaries 153,000 Sales office...
Cost Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Raw materials purchases $250,000 Direct labor 140,000 Depreciation on factory equipment 45,000 Depreciation on factory building 30,000 Depreciation on headquarters building 45,000 Factory insurance 15,000 Property taxes: Factory 20,000 Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 1,800 Administrative salaries 150,000 Indirect labor salaries 153,000 Sales office...
Cost Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Raw materials purchases $280,000 Direct labor 140,000 Depreciation on factory equipment 45,000 Depreciation on factory building 30,000 Depreciation on headquarters building 60,000 Factory insurance 15,000 Property taxes: Factory 20,000 Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 1,800 Administrative salaries 150,000 Indirect labor salaries 153,000 Sales office...
Cost Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Raw materials purchases $250,000 Direct labor 140,000 Depreciation on factory equipment 45,000 Depreciation on factory building 30,000 Depreciation on headquarters building 45,000 Factory insurance 15,000 Property taxes: Factory 20,000 Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 2,400 Administrative salaries 150,000 Indirect labor salaries 153,000 Sales office...
Cost Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Raw materials purchases $250,000 Direct labor 140,000 Depreciation on factory equipment 45,000 Depreciation on factory building 30,000 Depreciation on headquarters building 45,000 Factory insurance 15,000 Property taxes: Factory 20,000 Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 2,400 Administrative salaries 150,000 Indirect labor salaries 153,000 Sales office...
Cost Assignment Methods Brody Company makes industrial cleaning sevents. Various chemicals, detergent, and water ied together and the bottled in 10 gallon drums Brody provided the following information for last Raw materials purchases $280,000 Direct labor 140,000 Depreciation on factory coment 45,000 Depreciation on factory building 30,000 Depreciation on headquarters building 60,000 Factory insurance 15,000 Property taxes Factory 20,000 Headquarters 18,000 Utilities for factory 34,000 ities for sales office 2.400 Administrative salaries 150,000 Indirect labor salaries 159,000 Sales office salaries...
eBook Cost Assignment Methods Brody Company makes industrial deaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon provided the following information for last year Raw materials purchases Direct labor Depreciation on factory equipment Depreciation on factory building Depreciation on headquarters building Factory insurance Property taxes: $250,000 140,000 45,000 30,000 60,000 15,000 20,000 18,000 34,000 1,800 150,000 153,000 90,000 127,000 124,000 84,000 102,000 Factory utilities for factory Utilities for sales office Administrative Indirect labor salaries...
drums. Brody provided the following information for last year: Raw materials purchases Direct labor Depreciation on factory equipment Depreciation on factory building Depreciation on headquarters building Factory insurance Property taxes: Factory Headquarters Utilities for factory $250,000 140,000 45,000 30,000 50,000 15,000 Utilities for sales office Administrative salaries Indirect labor salaries Sales office salaries 20,000 18,000 34,000 1,800 150,000 156,000 90,000 124,000 124,000 84,000 102,000 130,000 82,000 Beginning balance, raw materials Beginning balance, work in process Beginning balance, finished goods Ending...
Answer options for question
4. Beginning work in process, cost of goods manufactured, direct
materials, direct wages, ending work in process.
5. Beginning finished goods inventory, cost of good avaliable
for sale, cost of goods manufactured, cost of goods sold, ending
finished goods inventory.
6. Administrative expenses, cost of goods sold, gross margin,
operating income, sales, selling expenses.
Cost Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon...
X Company has the following information for last year: Raw Material Purchase $ 400,000 Indirect Factory Labor $ 65,000 Direct Labor $ 150,000 Administrative Salaries $ 142,000 Depreciation on Factory Equipment $ 45,000 Sales Office Salaries $ 100,000 Depreciation on Factory Building $ 70,000 Beginning Balance, Raw Material $ 150,000 Depreciation on Office Building $ 35,000 Beginning Balance, WIP $ 200,000 Factory insurance $ 55,000 Beginning Balance, Finished Goods $ 79,000 Property taxes on Factory $ 22,000 Ending Balance, Raw...