Question

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 balance, raw materials Ending balance, work in process Ending balance, finished goods Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.

Answer 1

Cost of Goods Manufactured Direct Material used in production Direct Labor Manufacturing Overhead Total Manufacturing cost Beginning Work in Process Total cost of Work in process Ending Work in Process Cost of Goods Manufactured $ $ $ $ $ $ $ $ 272,000 140,000 300,000 712,000 124,000 836,000 130,000 706,000 Add less Cost of Goods sold Add Less Beginning Finished Goods Inventory Cost of Goods Manufactured Ending Inventory of Finished Goods Cost Of Goods Sold $ $ $ $ 84,000 706,000 82,000 708,000 6 Income Statement less $ 1,200,000 $ 708,000 $ 492,000 100% 1200000 / 1200000 59.00% 708000 / 1200000 41.00% 492000 / 1200000 Sales Revenue Cost of Goods Sold Gross Profit Operating Exps: Administrative Expense Selling Expense Net Income $ $ $ 218,000 151,800 122,200 18.17% 218000 / 1200000 12.65% 151800 / 1200000 10.18% 122200 / 1200000 Working: Depreciation Factory equipment Depreciation Factory building Factory insurance Property tax-factory Utilities - factory Indirect labor Manufacturing Overhead 45000 30000 15000 20000 34000 156000 300000 Administrative salaries Depreciation - Headquater Property Tax-Headquarter Total Administrative Exp $ $ $ $ 150,000 50,000 18,000 218,000 Utilities- sales office Sales Office Salaries Sales Commission Total Selling Expense $ $ $ $ 1,800 90,000 60,000 151,800