Question

In: Accounting

Given the following data for 2017: Administrative costs &n

Given the following data for 2017:

Administrative costs $35,000

Current liabilities 18,000

Building depreciation (80% for plant) 25,000

Indirect materials and supplies 4,000

Sales commission expenses 12,000

Accounts receivable 15,000

Direct materials inventory, Jan 1, 2017 15,000

Direct labor 32,000

Direct materials inventory, Dec 31, 2017 16,000

Finished goods inventory, Jan 1, 2017 8,000

Finished goods inventory, Dec 31, 2017 7,000

Materials purchases 20,000

Work in process inventory, Dec 31, 2017 10,000

Supervisory and indirect labor 12,000

Accounts payable 9,000

Property taxes (80% for plant) 10,000

Utilities and power (90% for plant) 30,000

Work in process inventory, Jan 1, 2017 12,000

Sales revenue 200,000

Stockholders’ equity 75,000

Determine:

a) The cost of goods manufactured.

b) The operating income.

c) Give an example of:

i. Direct cost

i. Product cost

i. Period cost

i. Variable cost

Expert Solution

Direct materials inventory, Jan 1, 2017	15000
Materials purchases	20000
Direct materials inventory, Dec 31, 2017	(16000)	19000
Direct labor		32000
Factory overhead
Building depreciation [25000*.80]	20000
Indirect materials and supplies	4000
Supervisory and indirect labor	12000
Property taxes [10000*.80]	8000
Utilities and power [30000*.90]	27000
Totalfactory overhead		71000
manufacturing cost		122000
Work in process inventory, Jan 1, 2017		12000
Work in process inventory, Dec 31, 2017		(10000)
cost of goods manufactured		124000

2)

cost of goods sold =beginning FG+cost of goods manufactured-ending FG

= 8000+124000-7000

= 125000

OPerating expense= Administrative costs +building depreciation+ Sales commission expenses +property taxes+utilities and power

35000+[25000*.20]+12000+[10000*.20]+[30000*.10]

35000+ 5000+12000+2000+3000

57000

operating income = sales- cost of goods sold -operating expense

= 200000-125000-57000

= 18000

3)a )Direct cost = direct labor

product cost= Direct material used

period cost= sales commission.

variable cost = direct labor

ekkarill92 answered 1 year ago

6. Given the following data for 2017: Administrative costs $35,000 Current liabilities 18,000 Building depreciation (80%...

6. Given the following data for 2017: Administrative costs $35,000 Current liabilities 18,000 Building depreciation (80% for plant) 25,000 Indirect materials and supplies 4,000 Sales commission expenses 12,000 Accounts receivable 15,000 Direct materials inventory, Jan 1, 2017 15,000 Direct labor 32,000 Direct materials inventory, Dec 31, 2017 16,000 Finished goods inventory, Jan 1, 2017 8,000 Finished goods inventory, Dec 31, 2017 7,000 Materials purchases 20,000 Work in process inventory, Dec 31, 2017 10,000 Supervisory and indirect labor 12,000 Accounts payable...

Given the following information for Macro Drive Inc. 2017 Selling and administrative expenses 150,000 Depreciation expense...

Given the following information for Macro Drive Inc. 2017 Selling and administrative expenses 150,000 Depreciation expense 280,000 Interest expense 140,000 Sales 1,400,000 Taxes 135,500 Cost of Goods Sold 500,000 Prepare (in good form) an income statement for 2017 for Macro Drive Inc Assume that Micro Drive Inc. has 50,000 shares outstanding, calculate the Earnings Per Share for the company for the period ending 2017 Differentiate between accounting income and free cash flow. Why is FCF the most important measure of...

Which of the following is true of variable costing? It expenses administrative costs as costs of...

Which of the following is true of variable costing? It expenses administrative costs as costs of goods sold It is required for external reporting to shareholders It treats direct manufacturing costs as a product cost It includes fixed manufacturing overhead as an inventoriable cost Tauton Company uses the high low to estimates its cost function. The information for 2017 is provided below: Machine hour’s costs Highest observation of cost driver 4000 332000 Lowest observation of cost driver 3000 ...

Contents » X Company has the following data from 2016 and 2017: 2016 2017 Total costs...

Contents » X Company has the following data from 2016 and 2017: 2016 2017 Total costs $260,600 $411,850 Units produced 32,000 57,000 Expected production in 2018 is 43,800 units. Using the high-low method with the 2016 and 2017 data to determine the parameters of the cost function, what are estimated total costs in 2018?

Given Sales in units 10,000 Variable manufacturing costs per unit 5 Variable administrative costs per unit...

Given Sales in units 10,000 Variable manufacturing costs per unit 5 Variable administrative costs per unit 2 Fixed manufacturing costs per unit 2 Fixed administrative costs per unit 1 Variable costs 75% of sales Selling price per unit? $2.22 $9.33 $17.50 $20 Given for XM Company the following data for January 20X1. Direct material purchased and used in production accounted for $ 50000 Units purchased 5000 The standard units 4200 Managers estimate price variance not to exceed +1% of the...

Fixed costs: Manufacturing $115,000 Marketing 20,000 Administrative 17,000 Variable costs: Manufacturing $115,000 Marketing 21,000 Administrative 38,000...

Fixed costs: Manufacturing $115,000 Marketing 20,000 Administrative 17,000 Variable costs: Manufacturing $115,000 Marketing 21,000 Administrative 38,000 During the year, the company produced and sold 40,000 units of product at a selling price of $10.42 per unit. There was no beginning inventory of product at the beginning of the year. What is the contribution margin per unit for Blaine Corporation? (Round any intermediary calculations and your final answer to the nearest cent.)

You are given the following data for year 1: revenue = 200, cash operating costs =...

You are given the following data for year 1: revenue = 200, cash operating costs = 120, depreciation 20 and the tax rate of 25%. Calculate the after tax operating cash flow (OCF) for the project in year 1 Select one: a. $37.5 b. $80 c. $65 d. $45 Stock A has a beta of 1.0 and very high specific risk. If the expected return on the market is 15%, then according to the CAPM the expected return on Stock...

Write a JAVA pogram for the following scenario. Given an n × n × n cube...

Write a JAVA pogram for the following scenario. Given an n × n × n cube containing n3 cells, we are to place n queens in the cube so that no two queens challenge each other (so that no two queens are in the same row, column, or diagonal). In JAVA, implement it on your system to solve problem instances in which n = 4 and n = 8.

Answer the following questions using the data given below. Moviegoer Spending on Snacks (n = 10)...

Answer the following questions using the data given below. Moviegoer Spending on Snacks (n = 10) Age (X) ($) Spent (Y) 30 6.85 50 10.50 34 5.50 12 10.35 37 10.20 33 10.75 36 7.60 26 10.10 18 12.35 46 8.35 Use Excel to make a scatter plot of the data. Select the data points, right-click, select Add Trendline, select the Options tab, and choose Display equation on chart and Display R-squared value on chart. Picture Click here for the...

he following information is available for Sage Hill, Inc. for the year 2017. Administrative expense Officers'...

he following information is available for Sage Hill, Inc. for the year 2017. Administrative expense Officers' salaries $11,000 Depreciation of office furniture and equipment 8,400 Cost of goods sold 121,520 Rent revenue 2,500 Selling expense Delivery expense 4,400 Sales commissions 16,970 Depreciation of sales equipment 13,200 Sales revenue 231,000 Income tax 12,370 Interest expense 3,460 Common shares outstanding for 2017 total 23,000 (000 omitted). Prepare an income statement for Sage Hill Inc. for the year 2017 using the multiple-step form....