Vintage Furniture constructs and sells executive style conference tables. The selling price is $10,000 per table. A unique feature is that the only raw material used in the construction of each table, other than indirect materials like glues and screws, comes entirely from a single tree. Tree prices and other costs of production have remained stable, and Vintage is able to use each tree purchased without incurring any significant spoilage.
Consider the following "disorganized" information and complete the indicated requirements.
Ending work in process (700 tables) |
$2,100,000 |
Selling price per table |
10,000 |
Ending finished goods (500 tables) |
3,500,000 |
Indirect labor incurred during the period |
145,000 |
Raw materials transferred into production (800 trees) |
800,000 |
Beginning finished goods (500 tables) |
3,500,000 |
Cost of glues and screws |
42,000 |
Beginning work in process |
1,645,000 |
Ending raw materials (600 trees) |
600,000 |
Direct labor incurred during the period |
4,400,000 |
Selling, general, and administrative costs incurred |
1,360,000 |
Depreciation of factory equipment |
89,000 |
Raw material purchases during the period (1,100 trees) |
1,100,000 |
All other factory overhead |
420,000 |
Tables sold (800 tables) |
(a) Calculate the number of units transferred to finished goods.
(b) Calculate the cost of goods manufactured.
(c) Calculate the cost of goods sold.
(d) Calculate net income. Assume an income tax rate of 38%.
A. |
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B. |
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C. |
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D. |
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E. |
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F. |
None of the above |
A. |
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Calculations
Beginning finished goods- A | 500 |
Ending finished goods- B | 500 |
Tables sold- C | 800 |
a) units transferred to finished goods | 800 |
(C+B-A) |
Raw materials transferred into production | 8,00,000 |
Direct labor incurred during the period | 44,00,000 |
Indirect labor incurred during the period | 1,45,000 |
Cost of glues and screws | 42,000 |
Depreciation of factory equipment | 89,000 |
All other factory overhead | 4,20,000 |
Beginning work in process | 16,45,000 |
Ending work in process (700 tables) | -2100000 |
b) cost of goods manufactured | 54,41,000 |
Cost of goods manufactured | 54,41,000 |
Beginning finished goods (500 tables) | 35,00,000 |
Ending finished goods (500 tables) | -3500000 |
c) cost of goods sold | 54,41,000 |
Sales | 80,00,000 |
Cost of goods sold | -54,41,000 |
Selling, general, and administrative costs incurred | -1360000 |
11,99,000 | |
Income Tax (38%) | -4,55,620 |
d) net income | 7,43,380 |
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Vintage Furniture constructs and sells executive style conference tables. The selling price is $10,000 per table....
Vintage Furniture constructs and sells executive style conference tables. The selling price is $10,000 per table. A unique feature is that the only raw material used in the construction of each table, other than indirect materials like glues and screws, comes entirely from a single tree. Tree prices and other costs of production have remained stable, and Vintage is able to use each tree purchased without incurring any significant spoilage. Consider the following "disorganized" information and complete the indicated requirements....
Lean Accounting Vintage Audio Inc. manufactures audio speakers. Each speaker requires $127 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period: Speaker assembly cell, estimated costs: Labor $94,980 Depreciation 12,740 Supplies 4,630 Power 3,480 Total cell costs for the period $115,830 The operating plan calls for 195 operating hours for the period. Each speaker requires 10 minutes of cell A sequence of activities linked together for performing a particular task.process time....
Vintage Audio Inc. manufactures audio speakers. Each speaker requires $127 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period: Speaker assembly cell, estimated costs: Labor $45,050 Depreciation 6,040 Supplies 2,200 Power 1,655 Total cell costs for the period $54,945 The operating plan calls for 185 operating hours for the period. Each speaker requires 20 minutes of cell process time. The unit selling price for each speaker is $344. During the period,...
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