Question

Complete the following questions using Microsoft Excel. No other submission format is allowed. Review the grading rubric to confirm you are meeting the assignment requirements. (All amounts in SAR except units.)

Given the following information for Riyadh Corporation:
Advertising costs	18,000
Administrative salaries	39,000
Delivery vehicle depreciation	12,000
Factory repair and maintenance	55,000
Indirect labor	48,000
Indirect materials	23,000
Manufacturing equipment depreciation	18,000
Office rent	24,000
President's salary	150,000
Sales revenue	1,000,000
Sales salary	120,000
Direct materials	140,000
Direct labor (10,000 hours)	250,000
Machine hours	1,600
Machine hours per unit	4
Direct labor hours per unit	4
Direct materials per unit	?
Units manufactured	400
Units sold	375

1. Identify (list) and total period costs
2. Calculate overhead per unit based on machine hours
3. Calculate total product costs for units manufactured
4. Calculate total cost of goods sold
5. Prepare income statement in good form assuming no beginning inventory
6. You must show all your work

Answer 1

A	B	C
1	1. Identify (list) and total period costs
2
3	Period costs	Amount
4	Advertising costs	18000
5	Administrative salaries	39000
6	Delivery vehicle depreciation	12000
7	Office rent	24000
8	President's salary	150000
9	Sales salary	120000
10	Total	363000
11
12	2. Calculate overhead per unit based on machine hours
13
14	Factory repair and maintenance	55000
15	Indirect labor	48000
16	Indirect materials	23000
17	Manufacturing equipment depreciation	18000
18	Total overhead cost	144000
19	Machine hours	1600
20	Overhead rate per machine hour	90
21	Number of machine hours per unit	4
22	Overhead per unit based on machine hours	360
23
24	3. Calculate total product costs for units manufactured
25
26	Direct materials	140000
27	Direct labor	250000
28	Total overhead cost	144000
29	Total product costs for units manufactured	534000
30
31	4. Calculate total cost of goods sold
32
33	Total product costs for units manufactured	534000
34	Number of units manufactured	400
35	Product cost per unit	1335
36	Number of units sold	375
37	Total cost of goods sold	500625
38
39	5. Prepare income statement in good form assuming no beginning inventory
40
41
42	Sales revenue	1000000
43	Cost of goods sold	500625
44	Gross profit	499375
45	Selling general and administrative expenses	363000
46	Net income	136375

Above figures have been calculated in the following manner:

A	B	C
1	1. Identify (list) and total period costs
2
3	Period costs	Amount
4	Advertising costs	18000
5	Administrative salaries	39000
6	Delivery vehicle depreciation	12000
7	Office rent	24000
8	President's salary	150000
9	Sales salary	120000
10	Total	=SUM(C4:C9)
11
12	2. Calculate overhead per unit based on machine hours
13
14	Factory repair and maintenance	55000
15	Indirect labor	48000
16	Indirect materials	23000
17	Manufacturing equipment depreciation	18000
18	Total overhead cost	=SUM(C14:C17)
19	Machine hours	1600
20	Overhead rate per machine hour	=C18/C19
21	Number of machine hours per unit	4
22	Overhead per unit based on machine hours	=C20*C21
23
24	3. Calculate total product costs for units manufactured
25
26	Direct materials	140000
27	Direct labor	250000
28	Total overhead cost	=C18
29	Total product costs for units manufactured	=SUM(C26:C28)
30
31	4. Calculate total cost of goods sold
32
33	Total product costs for units manufactured	=C29
34	Number of units manufactured	400
35	Product cost per unit	=C33/C34
36	Number of units sold	375
37	Total cost of goods sold	=C35*C36
38
39	5. Prepare income statement in good form assuming no beginning inventory
40
41
42	Sales revenue	1000000
43	Cost of goods sold	=C37
44	Gross profit	=C42-C43
45	Selling general and administrative expenses	=C10
46	Net income	=C44-C45