Question
In: Accounting
Forever Manufacturing manufacture picture frames. At the end of December 2015, the accounting records of the...
Forever Manufacturing manufacture picture frames. At the end of December 2015, the accounting records of the business show the following:
Inventories 31/12/2014 31/12/2015
Materials $13,000 $7,750
Work in process 0 1,750
Finished goods 0 2,000
Other information:
Depreciation expense on plant equipment $15,000
Depreciation expense on delivery truck 2,500
R & D for graphic designs 3,700
Sales commission 4,000
Utilities for plant 2,000
Plant janitorial services 750
Direct labour 20,000
Direct material purchases 32,000
Sales Revenue 126,450
Customer warranty refunds 1,500
Rent on plant 11,000
Requirements:
i) Prepare a schedule of cost of goods manufactured for the year ended December 31, 2015
ii) Prepare an income statement for Forever Manufacturing for the year ended December 31, 2015
iii) What is the unit product cost if Forever Manufacturing manufactured 1,000 picture frames for the year?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Waddell Company had the following balances in its accounting records as of December 31, 2015: ...
Waddell Company had the
following balances in its accounting records as of December 31,
2015:
Assets
Liabilities and Equity
Cash
$
55,000
Accounts Payable
$
27,000
Accounts Receivable
53,000
Common Stock
89,000
Land
28,000
Retained Earnings
20,000
Total
$
136,000
Total
$
136,000
The following accounting events
apply to Waddell Company's 2016 fiscal year:
Jan.
1
Acquired $56,000
cash from the issue of common stock.
Feb.
1
Paid $5,700 cash in
advance for a one-year lease for...
The following accounts are taken from the accounting records of Dory Company at December 31, 2015...
The following accounts are taken from the accounting records of
Dory Company at December 31, 2015 after adjustments:
Sales revenue
$250,000
Sales salaries expense
14,000
Administrative salaries expense
15,000
Depreciation expense: equipment
8,000
Purchases
160,000
Sales returns
1,000
Purchases returns
2,000
Freight-in
10,000
Inventory, 1/1/15
80,000
Retained earnings, 1/1/15
60,000
In addition, the following information is available:
·
The inventory on December 31, 2015, was $75,000.
·
Ten thousand shares of common stock were outstanding during the
entire year. Dory...
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backing. Beginning inventory includes 1400 metre of framing, 1000
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of backing. Beginning inventory includes 800 metre of framing, 200
square metres of glass, and 300 square metres of backing. Current
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various sizes. Historically, the average frame requires four metres
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backing. Beginning inventory includes 1200 metre of framing, 800
square metres of glass, and 600 square metres of backing. Current
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2015
$139,000a
2017
$206,000
2016
162,000b
2018
279,000
a Includes a $10,000 increase because
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Myles Manufacturing Company's accounting records reflect the following inventories: &
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following inventories:
Dec. 31, 2014
Dec. 31, 2013
Raw materials
inventory
$620,000
$820,000
Work in process inventory
300,000
220,000
Finished goods inventory
380,000
100,000
During 2014, $900,000 of raw materials were purchased, direct
labor costs amounted to $1,000,000, indirect labor costs amounted
to $300,000, and manufacturing overhead was $960,000.
Based upon the above information, cost of goods sold for the
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order.
OMR
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Carriage on purchase - 900
Raw material cost at end - 11,000
Work in progress in the beginning - 3,500
Work in progress in the end - 2,500
Direct labour cost - 28,000
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