Question

The following information is obtained from the records of ABC company which manufactures tables that consist of wood and metal parts: Relevant range 5,000 Units Actual production 5,000 Units Actual sales 5,000 Units Selling price $40/ Unit Materials Used: Wood Metal Paint $15,000 $10,000 $ 5,000 $ 50 $ 150 $ 500 Glue Screws Wrapping paper used by selling department Stationary: Factory Selling department $ $ $ 100 50 500 |Administrative departments $ 31,350 Labor cost: Wood and metal cutters $10,000 Tables assemblers $ 7,500 Sanders $ 5,000 Cotonounoninoro 7 on

1. How much is the total costs of Direct materials?

2. How much is the total direct labor costs?

3. How much is the total factory overhead costs ( indirect material + Indirect labor + indirect other expenses) ?

4. How much is the total amount of prime costs?

5. How much is the total conversion costs?

6. How much is the total manufacturing costs?

7 How much is the cost of goods manufactured?

8. How much is the total amount of sales revenues?

9. How much is the cost of goods sold?

10. How much is the gross profit or gross margin?  

11. How much is the total selling or marketing expenses?

12. How much is the total amount of administrative expenses?

13. How much is total operating expenses?

14. How much is the income from operation?

Answer 1

1	Total cost of direct materials:
		$
	Wood	15000
	Metal	10000
	Paint	5000
	Total	30000
2	Total direct labor cost:
				$
	Wood and metal cutters			10000
	Tables assemblers			7500
	Sanders			5000
	Total			22500
3	Total factory overhead cost:
						$
	Indirect material:
	Glue					50
	Screws					150
	Indirect labor:
	Factory supervisors					7000
	Indirect other expenses:
	Depreciation-Factory machines and equipment					5000
	Rent-Factory					2000
	Utilities-Factory					1000
	Total					15200
4	Prime cost=Direct material+Direct labor=30000+22500=$ 52500
5	Total conversion cost=Direct labor+Factory overhead=22500+15200=$ 37700
6	Total manufacturing costs=Direct material+Direct labor+Factory overhead=30000+22500+15200=$ 67700
7	Cost of goods manufactured=Total manufacturing cost+Beginning WIP-Ending WIP=67700+0-0=$ 67700
8	Sales revenue=Actual sales*Selling price=5000*40=$ 200000