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Write My Essay For Me- BUS FPX 4064 Assessment 1 Part 3 Prepare Statements for a Manufacturing Company.
Prepare Statements for a Manufacturing Company
Scenario:
The administrative offices and manufacturing plant of Idaho Tool & Die share the same building. The following information (in $000s) appears in the accounting records for last year:
|
Idaho Tool & Die Accounting Record |
|
|
Administrative costs |
$ 10,560 |
|
Building and machine depreciation (75% of this amount is for factory) |
5,940 |
|
Building utilities (90% of this amount is for factory) |
8,250 |
|
Direct labor |
5,544 |
|
Direct materials inventory, December 31 |
84 |
|
Direct materials inventory, January 1 |
72 |
|
Direct materials purchases |
24,090 |
|
Factory supervision |
3,234 |
|
Finished goods inventory, December 31 |
390 |
|
Finished goods inventory, January 1 |
324 |
|
Indirect factory labor |
5,472 |
|
Indirect materials and supplies |
4,110 |
|
Marketing costs |
5,226 |
|
Property taxes on building (80% of this amount is for factory) |
5,040 |
|
Sales revenue |
85,602 |
|
Work-in-process inventory, December 31 |
174 |
|
Work-in-process inventory, January 1 |
192 |
|
REQUIRED |
|
|
Prepare an income statement with a supporting cost of goods sold statement. |
|
|
Idaho Tool & Die |
|||
|
Beginning work in process, Jan. 1 |
192 |
||
|
Manufacturing costs: |
|||
|
Direct materials: |
|||
|
Beginning inventory, Jan. 1 |
$ 72.00 |
||
|
Add: Purchases |
$ 24,090.00 |
||
|
Direct materials available |
$ 24,162.00 |
||
|
Less ending inventory, Dec. 31 |
$ 84.00 |
||
|
Direct materials used |
$ 24,078.00 |
||
|
Direct labor |
$ 5,544.00 |
||
|
Manufacturing overhead: |
|||
|
Indirect factory labor |
$ 5,472.00 |
||
|
Factory supervision |
$ 3,234.00 |
||
|
Indirect materials and supplies |
$ 4,110.00 |
||
|
Building utilities (90% of total) |
$ 7,425.00 |
||
|
Building & machine depreciation (75% of $5,940) |
$ 4,455.00 |
||
|
Property taxes—factory (80% of total) |
$ 4,032.00 |
||
|
Total manufacturing overhead |
$ 28,728.00 |
||
|
Total manufacturing costs |
$ 58,350.00 |
||
|
Total cost of work in process during the year |
$ 58,350.00 |
||
|
Less work in process, Dec. 31 |
$ 174.00 |
||
|
Costs of goods manufactured during the year |
$ 58,176.00 |
||
|
Beginning finished goods, Jan. 1 |
$ 324.00 |
||
|
Finished goods available for sale |
$ 58,500.00 |
||
|
Less ending finished goods, Dec. 31 |
$ 390.00 |
||
|
Cost of goods sold |
$ 58,110.00 |
||
|
Idaho Tool & Die |
|||
|
Sales revenue |
$ 85,602.00 |
||
|
Less: Cost of goods sold (per statement) |
$ 58,110.00 |
||
|
Gross profit |
$27,492 |
||
|
Marketing and administrative costs: |
|||
|
Depreciation (25% of total) |
$ 1,485.00 |
||
|
Utilities (10% of total) |
$ 825.00 |
||
|
Property taxes (20% of total) |
$ 1,008.00 |
||
|
Administrative costs |
$ 10,560.00 |
||
|
Marketing costs |
$ 5,226.00 |
||
|
Total marketing and administrative costs |
19,104 |
||
|
Operating profit |
8,338.00 |
||
The post BUS FPX 4064 Assessment 1 Part 3 Prepare Statements for a Manufacturing Company appeared first on Tutors Academy.
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