The following selected information was extracted from the 20x1 accounting records of Lone Oak Products:
Raw material purchases | $ | 175,000 | |
Direct labor | 255,000 | ||
Indirect labor | 107,000 | ||
Selling and administrative salaries | 133,000 | ||
Building depreciation* | 80,000 | ||
Other selling and administrative expenses | 195,000 | ||
Other factory costs | 343,000 | ||
Sales revenue ($130 per unit) | 1,495,000 | ||
*Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions.
Inventory data:
January 1 | December 31 | |||||
Raw material | $ |
16,000 |
$ |
18,200 |
||
Work in process |
35,800 |
62,100 | ||||
Finished goods* |
111,100 |
97,900 | ||||
*The January 1 and December 31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.
Calculate:
A) Manufacturing Overhead:
B) Cost of Goods Manufactured:
C) Cost of Good Sold
D) Net Income
E) Number of Complete Units
a) Manufacturing overhead
Indirect labor | 107000 |
Building depreciation (80000*75%) | 60000 |
Other factory cost | 343000 |
Manufacturing overhead | 510000 |
b) Direct material used = 16000+175000-18200 = 172800
Total manufacturing cost = 172800+255000+510000 = 937800
Cost of goods manufactured = 35800+937800-62100 = 911500
c) Cost of goods sold = 111100+911500-97900 = 924700
d) Net income :
Sales | 1495000 |
Cost of goods sold | -924700 |
Gross profit | 570300 |
Selling and administrative expense (133000+20000+195000) | 348000 |
Net income | 222300 |
f) No of unit completed = 1190+11500-1350 = 11340 Units
The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Raw...
The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Raw material purchases $ 176,000 Direct labor 256,000 Indirect labor 108,000 Selling and administrative salaries 133,000 Building depreciation* 80,000 Other selling and administrative expenses 195,000 Other factory costs 343,000 Sales revenue ($130 per unit) 1,495,000 *Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions. Inventory data: January 1 December 31 Raw material...
Required information
[The following information applies to the questions
displayed below.]
The following selected information was extracted from the 20x1
accounting records of Lone Oak Products:
Raw material purchases
$
175,000
Direct labor
254,000
Indirect labor
109,000
Selling and administrative salaries
133,000
Building depreciation*
80,000
Other selling and administrative expenses
195,000
Other factory costs
344,000
Sales revenue ($130 per unit)
1,495,000
*Seventy-five percent of the company's building was devoted to
production activities; the remaining 25 percent was used for
selling...
[The following information applies to the questions displayed below.] The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Raw material purchases $ 175,000 Direct labor 254,000 Indirect labor 109,000 Selling and administrative salaries 133,000 Building depreciation* 80,000 Other selling and administrative expenses 195,000 Other factory costs 343,000 Sales revenue ($130 per unit) 1,495,000 *Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative...
The following information was extracted from the accounting records of Pickin’ and Grinnin’, LLC, a manufacturer of guitars: Beginning Raw Materials Inventory $375,000 Ending Raw Materials Inventory $435,000 Direct Factory Labor $185,000 Indirect Factory Labor $ 35,000 Factory Utilities $ 44,000 Selling, General, and Administrative Expenses $125,000 Building Depreciation* $300,000 *70% of the building is devoted to production, 30% of the building is devoted to selling and administrative functions. $451,199 in direct materials were purchased during the...
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