In: Accounting
Boisvert ltée had the following inventories at the beginning and at the end of the year:
1 JANUARY 31 DECEMBER
¬
Raw materials (of which 20% were supplies) |
10 000 $ |
12 000 $ |
Current products |
20 000 $ |
17 000 $ |
Finished products |
30 000 $* |
?? |
* The stock of finished products on January 1 was 7,500 units |
* The stock of finished products on January 1 was 7,500 units
During the year, 250,000 units were sold and 247,000 units were manufactured. Purchases of raw materials cost $ 375,000, of which 80% were raw materials (20% supplies). The cost of the labor was $ 400,000, 65% direct labor and 35% indirect labor. In addition to supplies (also called indirect materials) and indirect labor, the following manufacturing overhead costs were incurred:
Driving force $ 160,000
Depreciation 45,000
Property taxes 85,000
Repairs and maintenance 20,000
The selling costs were $ 125,000 and the administration costs were $ 80,000.
Work required:
Calculate:
1. the cost of the products produced;
2. product costs (also called product costs);
3. period costs (also called period costs);
4. the income statement.