Question

In: Accounting

The following information pertains to Big Three Manufacturing Company for March 2018. Assume actual overhead equaled...

The following information pertains to Big Three Manufacturing Company for March 2018. Assume actual overhead equaled applied overhead.

March 1

Inventory balances

Raw materials

$

12,707

Work in process

17,429

Finished goods

9,476

March 31

Inventory balances

Raw materials

$

11,843

Work in process

13,186

Finished goods

7,887

During March

Costs of raw materials purchased

$

63,497

Costs of direct labor

20,288

Costs of manufacturing overhead

12,279

Sales revenues

193,247

The gross profit is $______________

Solutions

Expert Solution

The gross profit is $ 90,487

Working

Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning $        12,707.00
Raw material Purchased $        63,497.00
Raw material available for use $        76,204.00
Less: Raw material Inventory Ending $        11,843.00
Direct Material Used $         64,361.00
Direct labor $         20,288.00
Total Manufacturing overheads   $         12,279.00
Total manufacturing Cost During the month $         96,928.00
Add: Work in process Beginning $         17,429.00
Total Work in Process $      114,357.00
Less: Work in progress Ending $         13,186.00
Cost of Goods Manufactured $      101,171.00

.

Schedule of cost of goods sold
Beginning Finished Goods Inventory $           9,476.00
Add: Cost of goods manufactured $      101,171.00
Goods Available for sale $      110,647.00
Less :Ending Finished goods Inventory $           7,887.00
Cost of Goods Sold $      102,760.00

.

Income statement (Partial)
Sales revenue $      193,247.00
Less: Cost of goods sold $      102,760.00
Gross profit $         90,487.00

Related Solutions

(CPA) The following information relates to the manufacturing operations of Herman Company for March: Actual total...
(CPA) The following information relates to the manufacturing operations of Herman Company for March: Actual total overhead costs $178,000 Flexible-budge formula based on machine-hours (MH) $110,000 + $0.50 per MH Budgeted total overhead cost rate per MH $1.50 per MH Total overhead spending variance $8,000 unfavorable Production-volume variance $5,000 favorable Herman uses the 3-variance analysis of overhead costs. a. Compute the actual machine-hours used. b. Compute the budgeted machine-hours allowed for actual output produced.
The following information pertains to the standard costs and actual activity for Repine Company for September:...
The following information pertains to the standard costs and actual activity for Repine Company for September: Standard cost per unit: Direct materials. . . .. 4 units of material A x $6.00 per unit, 1 unit of material B x $8.00 per unit Direct labor. . . . . . . 3 hours x $18.00 per hour Activity for September Materials purchased: Material A . . . . . . . . . 6,750 units x $6.20 per unit Material...
The following information pertains to DEF Company, Inc. for the year 2018. Liabilities at the end...
The following information pertains to DEF Company, Inc. for the year 2018. Liabilities at the end of the year, December 31, 2018 = $1,200 Contributed capital at the end of the year, December 31, 2018 = $700 Beginning retained earnings, January 1, 2018 = $300 Revenue during 2018 = $7,500 Expenses during 2018 = $6,800 Distributions to owners during 2018 = $100 What is the amount of the company's total assets at December 31, 2018? a. $2,800 b. $2,700 c....
1. The following information pertains to Julia & Company: March 1 Beginning inventory = 30 units...
1. The following information pertains to Julia & Company: March 1 Beginning inventory = 30 units @ $5.40 March 3 Purchased 14 units @ 3.50 March 9 Sold 24 units @ 8.50 What is the ending inventory balance for Julia & Company assuming that it uses FIFO? a. $49 b. $81 c. $64 d. $108 2. Northwest Fur Co. started the year with $96,000 of merchandise inventory on hand. During the year, $415,000 in merchandise was purchased on account with...
The following information pertains to Alleigh’s Mannequins:                  Manufacturing costs             
The following information pertains to Alleigh’s Mannequins:                  Manufacturing costs                    P1,500,000                  Units manufactured                     30,000                  Units sold                                     29,500 units sold for P85 per unit                  Beginning inventory                    0 units What is the amount of ending finished goods inventory?
The following information pertains to the payrolls of Warrs Company for November 2018: Employees       Wage earned...
The following information pertains to the payrolls of Warrs Company for November 2018: Employees       Wage earned               Wage earned               Federal Income           State/local                         By 10/31/2018 in November 2018     Tax                              Income Taxes Jane                 $105,000                     $12,000                       $1,500                         $650 Tom                     60,000                      7,000 500 250 Bill                        6,000 1,200                          0                                   0 Actual state unemployment tax rate is 4%, while the federal unemployment tax rate is 1%. The taxable income limit for social security tax...
Applied vs. Actual Manufacturing Overhead Davis Manufacturing Corporation applies manufacturing overhead on the basis of 150%...
Applied vs. Actual Manufacturing Overhead Davis Manufacturing Corporation applies manufacturing overhead on the basis of 150% of direct labor cost. An analysis of the related accounts and job order cost sheet indicates that during the year total manufacturing overhead incurred was $787,500 and that at year-end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $100,000, $50,000, and $350,000, respectively, of direct labor incurred during the current year. a. Determine the under applied manufacturing overhead at...
Applied vs. Actual Manufacturing Overhead Sloan Manufacturing Corporation applies manufacturing overhead on the basis of 120%...
Applied vs. Actual Manufacturing Overhead Sloan Manufacturing Corporation applies manufacturing overhead on the basis of 120% of direct labor cost. An analysis of the related accounts and job order cost sheet indicates that during the year total manufacturing overhead incurred was $420,000 and that at year-end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $60,000, $40,000, and $300,000, respectively, of direct labor incurred during the current year. a. Determine the over-applied manufacturing overhead at year-end...
The following information pertains to Alberto Manufacturing Company for year 2017. Sales revenue                          &nb
The following information pertains to Alberto Manufacturing Company for year 2017. Sales revenue                                                         $1,800,000                                Repairs and maintenance of factory                        $45,000 Direct material purchases                                          500,000                                Travel & entertainment cost by sales people             32,400 Direct manufacturing labor                                       250,000                                 Depreciation – factory equipment                              24,000 Administrative salaries                                             162,000                                 Depreciation—office equipment                                21,600 Sales commissions                                                 135,000                                Materials handling                                                    18,000 Sales salaries                                                           81,000                                 Property taxes – factory equipment                          18,000 Indirect manufacturing labor                                      69,000                                  Depreciation—factory building                                  15,000 Leasing costs – factory equipment                           54,000                                 Gain on disposal of assets                                         8,500 Advertising expense                                                 54,000                                 Sandpaper                                                                  6,000 Utilities                                                                       54,000                                  ...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following...
Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Goldratt Company consisted of the following activities and costs: Setup (1,000 setup hours) $118,000 Production scheduling (400 batches) 30,000 Production engineering (60 change orders) 90,000 Supervision (2,000 direct labor hours) 64,000 Machine maintenance (12,000 machine hours) 84,000 Total activity costs $386,000 The following additional data were provided for Job 845: Direct materials costs $7,000 Direct labor cost (5 Milling direct labor hours;35 Finishing direct labor hours) $1,000 Setup hours 5...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT