Question

please show fomulas

Given the following information for Dorttmund Corporation:

Advertising costs = 320,000
Office rent = 240,000
Direct materials = 800,000
Delivery vehicle depreciation = 90,000
Factory repair and maintenance = 420,000
Sales salary = 510,000
Indirect labor = 220,000
Manufacturing equipment depreciation = 180,000
Administrative salaries = 360,000
President's salary = 700,000
Sales revenue = 5,200,000
Indirect materials = 190,000
Direct labor = 1,500,000
Machine hours = 2,000
Direct Labor hours = 10,000
Machine hours per unit = 3
Direct labor hours per unit = 6
Direct materials per unit = ??
Units manufactured = 500
Units sold = 350

Calculate the following and show formulas
A) Identify (list) and total period costs.

B) Calculate overhead per unit based on machine hours.

C) Calculate total product costs for units manufactured.

D) Calculate total cost of goods sold.

E) Prepare income statement in good form assuming no beginning inventory.

Answer 1

Answer A) Details of Period Cost

S No.	Nature	Amount
1.	Advertisement Cost	3,20,000
2.	Office Rent	2,40,000
3.	Delivery Vehicle Deoreciation	90,000
4.	Factory Repair & Maintaiance	4.20,000
5.	Sales Salary	5,10,000
6.	Adminstrative Salary	3,60,000
7.	President Salary	7,00,000
	Total Period Costs	26,40,000

Answer B) Calculation of Total Overhead and Overhead per unit -

S No.	Nature of Overhead	Amount
1.	Advertisement Cost	3,20,000
2.	Office Rent	2,40,000
3.	Delivery Vehicle Deoreciation	90,000
4.	Factory Repair & Maintaiance	4.20,000
5.	Sales Salary	5,10,000
6.	Indirect Labour	2,20,000
7.	Manufacturing equipment depreciation	1,80,000
8.	Adminstrative Salary	3,60,000
9.	President Salary	7,00,000
10.	Indirect Materials	1,90,000
	Total Overhead Costs	32,30,000

Total Machine Hours used in production = Total Production units * Machine Hour Per Unit

= 500 * 3

= 1500 hours

Overhead Cost Per Machine Hour = Total Overhead Costs / Total Machine Hours used in production

= 32,30,000 / 1,500

= 2153.33 Per unit

Answer C) Total Product Costs

S No.	Nature	Amount
1.	Direct Material	8,00,000
2.	Direct Labour	15,00,000
3.	Indirect materials	1,90,000
4.	Indirect labour	2,20,000
5.	Manufacturing Equipment Depreciation	1,80,000
	Total Product CoSts	28,90,000

Answer D) Cost of goods sold

S No.	Nature	Amount
1.	Direct Material	8,00,000
2.	Direct Labour	15,00,000
3.	Indirect materials	1,90,000
4.	Indirect labour	2,20,000
5.	Manufacturing Equipment Depreciation	1,80,000
6.	Factory Repair & Maintaiance	4.20,000
	Total Cost of Production (500 units)	33,10,000
Less-	Closing Stock ( 33,10,000 * 150 / 500)	9,93,000
	Total Cost of goods sold	23,17,000

Answer E) Income Statement -

	Particulars	Amount
	Sales Revenue	52,00,000
Less-	Cost of Goods Sold	(23,17,000)
	Gross Profit	28,83,000
Less-	Selling & Distribution Expenses
	Advertiesment Expenses	(3,20,000)
	Delivery Vehicle Depreciation	(90,000)
	Sales Salary	(5,10,000)
Less-	Genreal & Administration Expenses
	Office Rent	(2,40,000)
	President Salary	(7,00,000)
	Administrative salary	(3,60,000)
	Net Income	6,63,000