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Nature’s Harvest, Inc. produces and sells granola bars available in the health foods section of local...

Nature’s Harvest, Inc. produces and sells granola bars available in the health foods section of local grocery stores. In 2016 (first year of operations) the company produced 150,000 units of its Bounty Bar product line. The sales price is $3.00 each. Related information appears below for 2016.ItemTotal CostAlmonds$27,000Whole Grain Oats9,000Wages for Factory Production Staff62,000Costs for Product Packaging45,000Canola Oil / Honey / Sugar20,000Utilities for the Factory6,000Salaries for Corporate Staff (CFO/CEO)100,000Wages for Factory Cleaning Staff15,000Rent on Corporate Headquarters 25,000Rent on Factory and Equipment50,000Required:1) What are the company’s total product costs for:a. direct labor b. direct materials c. factory overhead 2) What are the product costs to make 1 Bounty Bar? 3) What are the company’s total period costs? 4) If the company sold 120,000 units of the 150,000 units produced in 2016: a. What amount of cost of goods sold would have appeared in its 2016 income statement? b. What is their 2016 Gross Profit? c. What is their ending 2016 inventory value (Beg 2016 inventory was zero)? 5) Ignoring taxes what is their 2016 Net Income

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ekkarill92 answered 1 year ago
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