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Please help me answer the question 3,4,6,and show the step
The following information pertains to the most recent quarter at Precious Production Limited Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Depreciation, factory Insurance, factory Direct labour Maintenance, factory Administrative expenses Sales Utilities, factory Supplies, factory Selling expenses Indirect labour Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending 367,500 42,000 70,500 180,500 20,500 243,500 122,000 284,000 1,920,000 110,500 4,050 324,500 263,500 28,250 121,000 40,750 163,000
Required: 1. Prepare a schedule of cost of goods manufactured PRECIOUS PRODUCTION Schedule of Cost of Goods Manufactured For the quarter ended xxxx Direct materials Raw materials inventory, beginning Add: Purchases of raw materials Raw materials available for use Deduct Raw materials inventory, ending Raw materials used in production S 42,000 367,500 409,500 70,500 $ 339,000 243,500 Direct labour Manufacturing overhead Depreciation, factory Insurance, factory Maintenance, factory 180,500 20,500 122,000 110,500 263,500 4,050 Utilities, factory Indirect labour Supplies, factory Total overhead costs Total manufacturing costs Add Work in process inventory, beginning 701,050 1,283,550 28,250 1,311,800 163,000 $ 1,148,800 Deduct Work in process inventory, ending Cost of goods manufactured
2. Prepare an income statement PRECIOUS PRODUCTION LIMITED Income Statement For the quarter ended xxxx Sales S 1,920,000 Cost of goods sold Finished goods inventory, beginning Add. Cost of goods manufactured Goods available for sale Deduct: Finished goods inventory, ending S 40,750 1,148,800 1,189,550 163,000 1,026,550 893,450 Gross margin Selling and administrative expenses Administrative expenses Selling expenses 284,000 324,500 608,500 284,950 Operating income
3. Assume that the company produced the equivalent of 15,000 units of product during the year. What was the average cost per unit for direct labour? What was the average cost per unit for factory insurance? Round your answers to 2 decimal places.) Average cost Direct labour per unit per unit Insurance 4. Assume that the company expects to produce 17,000 units of product during the coming year. What average cost per unit and what total cost would you expect the company to incur for direct materials at this level of activity? For factory insurance? (In preparing your answer, assume that direct materials is a variable cost and that depreciation is a fixed cost, also assume that depreciation is computed on a straight-line basis.) (Do not round intermediate calculations. Round Average cost per unit answers to 2 decimal places.) Average cost per unit Total cost Direct materials Insurance
6. Assuming the company produced 22,000 fully and partially finished units during the year, determine the cost components of the finished goods inventory, which is composed of 4,400 finished units. Direct materials Direct labour Manufacturing overhead Total 0
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Direct Labor Insurance $243,500 $20,500 #of units produced 15,000 15,000 Average cost/unit $16.23 $1.37 Total Cost NOTE: Direct Labor $243,500 15,000 units $16.23; Insurance $20,500/15,000 units $1.37 Requirement-4: As Direct labor is a variable cost, it would remain constant at unit price level but vary proportionately with # of units produced. Insurance is a fixed cost which will remain constant at total. As a result, per unit cost will change as # of units produced change. Therefore,Direct Labor Insurance $275,910 $20,500 17,000 Total Cost # of units produced Average cost/unit NOTE Total Cost per Direct Labor Cost 17,000 units x $16.23 (as calculated in Part-3) $275,910; Average cost per unit for Insurance $20,500 (remain fixed)/17,000 units $1.21. 17,000 $16.23$1.21 Workings: Direct materials used # of units produced Direct material per unit Requirement-5: $339,000 22,000 $15.4091 # of finished goods $243,500 22,000 $11.0682 4,400 Direct materials Direct labor Mfg. overhead Total $67,800 [4,400 x $15.4091] $48,700 [4,400 x $11.0682] $398,610[Ref: Workings] S515,110 [S339,000/ 22,000] [S243,500 22,000] Depreciation Insurance Maintenance Utilities Indirect labor Supplies Total mfg. overhead $180,500 [Remain fixed] $20,500 Remain fixed] $122,000 Remain fixed] $22,100 [($110,500/22,000)*4,400] $52,700 [(S263,500/22,000)*4,400] $810 S4,050/22,000)*4,400] $398,610

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