principles-of-managerial-accounting-3
principles-of-managerial-accounting-3
Pearce Manufacturing Inc. incurred the following costs in February:
|
Direct labor |
$40,000 |
Advertising costs |
$1,000 |
|
|
Indirect labor |
$15,000 |
Factory rent |
$4,000 |
|
|
Administrative salaries |
$8,000 |
Factory depreciation |
$2,000 |
|
|
Raw materials purchased |
$10,000 |
Administrative rent |
$3,000 |
|
|
Indirect materials used |
$4,000 |
Administrative depreciation |
$1,000 |
|
|
In addition, the following information is also available: |
||||
|
Beginning |
Ending |
|||
|
Raw materials |
$2,000 |
$4,000 |
||
|
Work-in-process |
$25,000 |
$18,000 |
||
|
Finished goods |
$4,000 |
$12,000 |
||
|
Number of units produced |
10,000 units |
|||
|
Number of units sold |
||||
|
(sales price of $25 per unit) |
9,000 units |
|||
- 1.) Calculate total period costs.
- 2.) Calculate raw materials used.
- 3.) Calculate cost of goods manufactured.
- 4.) Calculate the product cost per unit.
- 5.) Calculate cost of goods sold.
- 6.) Calculate net operating income. (Ignore taxes)
The following information is available for the Brown Company for the month ended July 31:
|
Direct materials purchased |
$21,000 |
|
Direct labor (2,500 hrs@$12) |
$30,000 |
|
Indirect labor |
$3,000 |
|
Indirect materials |
$2,500 |
|
Office supplies expense |
$100 |
|
Factory equipment depreciation |
$2,000 |
|
Office equipment depreciation |
$750 |
|
Administrative expenses |
$20,000 |
|
Office utilities |
$75 |
|
Factory utilities |
$200 |
|
Marketing expense |
$2,500 |
|
Sales revenue |
$150,000 |
|
Sales commissions expense |
$1,500 |
|
Beginning |
Ending |
||
|
Direct materials inventory |
$27,000 |
$24,500 |
|
|
Work in process inventory |
$25,000 |
$29,000 |
|
|
Finished goods inventory |
$22,000 |
$15,000 |
- 7.) Determine the direct materials used in July.
- 8.) Determine cost of goods manufactured in July.
- 9.) Determine cost of goods sold for July
- 10.) Prepare an income statement for July. (Ignore taxes)
Complete responses should meet or exceed the required word count if applicable. The minimum word count will need to exceed 150 words for each question unless otherwise stated. You must show your work if the question required a numerical answer.
