Question

Assignment Ch2 revised (52-4, 02-M3, P2-4A, P2-490,00-16) 598.000 P2-49B Indicate the missing data in the statement Learning Objective 53 Consider the following incomplete cost of Good Manufactured statements from two independent companes. Cost of Goods Manufactured Statement Company A Company B Beginning work in process inventory $ 35,000 Plus: manufacturing costs incurred: Direct materials used Direct labor $ 66,000 $120,000 Manufacturing overhead Variable cost $118.000 Foxed cost $. 70.000 Total manufacturing costs to account for $354,500 5454.000 Less: Ending work in process inventory 5 22.000 Cost of goods manufactured $310.700 Income Statement Company A Company в Sales $995.000 Beginning finished goods inventory $ 69,300 44,000 Plus: Cost of goods manufactured $310.700 Cost of goods available for sale Less: Ending finishec goods inventory $_48.300 Cost of goods sold $419 000 Gross profit $997,800 $566,000 Less: operating expenses Selling and marketing expenses $160,000 $ 98.000 General and administrative expenses $133 000 Operating Income 5567,800 Additional information • Company A sold 53,200 units of finished goods at the price of $25 • Company B sold 24,625 units of finished goods, and ending finished goods inventory amounted to 556.000 • Company A produced 55,000 units of product in the year at the variable cost of $1.10 per unit. (For Manufacturing overhead) • Manufacturing overhead for company B amounted to $218,000 Requirements 1. Fill in the missing data in the statements above for both company A and B. 2. Compute the cost per unit of finish goods for company A. 3. Compute the selling price per unit for company B.

Answer 1

COST of Goods Manufactured Statement Company Al companys Beginning woook in process Inventory $35000 $18000 (+) Manufacturing costs incurred Direct material used $122500 $ 93806 Direct Labor $ 66000 $1,20,000 Manufactwring overhead variable Cost $.60500$ (18080 Fixed cost $70,000 $100,00 Total meanufacturing cost to account $354500 $454000 Ending work-in-process Sorentowy 1$ 43300 $23.000 Cost of goods mance factured $340700 $ 431000 WORKINGS. Company B tetal manufacturing overhead 218000 (-) variable cost of manuferveturing coresohead I 11800R $100,000

Company B. total manufacturing Cost $ 454000 (-) Manufacturing oveshead $ 218000 E Direct Labour. $ 120,00 & Direct material resed $98000 $ 18000 To Begining w-I-l Inventory to Company A variable manfachuring cost $ 60500 (55000 X 110) Company A $354000 2 e Total mane facturing cost Manufacturing oreshead e variable cost E fixed cost ED Direct labour $ 60500 $ 70,000 $ 66000 () Opening w-1-p Inventory. $35000 Direct material used $ 122500 - Company A I total manefacturing cost $354500 El cost of goods Manufactured $310760 anding w-1-p. Inventory, 43800

Income Statement Company A/ Company Sales, $1330000||$985000 - Begining finished goods Inventory $69800 $44000 (+) Cost of goods Manifuatured $310-400 $ 431000 Cost of goods arrailable for sale $380500||475000 Ge -> Ending finished goods Tuventuny $48300 56000 Cost of Geoods sold $3322008 $419000 Gross Profit $997800 $566000 e operanting expenses. Selling & Marketing expenses $180,000 $980UD General & Administrative expenses $250,000 $ 13301 operating Income $567900 335 000 WORKINGS and Company A total sales (Cost of Goods sold al Goods sold 332200 & Gross profit sales 997800 $1330,000

I t Gross profit operating Ineome Selling Marketing Company A. $ 997800 $267800- $180,000 , $ 250,00 - expenses. - General & Administrative xusus Computation of cost per Writ of Company A Company A Cost of broods sold $ 339200 Finished goods, 53.200 Unels cost fuer Crit $332200 53200 mile $ 6.244 per Unit Company B Compretation of selling forice per Vriet of Company B. tatal Selling price $98500 Finished goods 24625 Units Selling price per Unit $985070 = $40 per Unit 24625 units ?