Problem:
Following are accountig records for xx company
Raw material purchases.......350,000
Direct labour....508,000
Indirect labour....218,000
Selling and admin salaries....266,000
Building depriciation...160,000
Other selling and admin exp....380,000
Other factory costs...688,000
Sales revenue (260$ per unit).....2,990,000
75% of company building was used to production acctivities, 25% for selling and admin.
Inventory data. Jan 1. Dec 31
Raw material. 31,600. 26,400
Work in progress. 71,400. 124,200
Finished goods. 222,200. 195,800
Jan 1 and Dec 31 finished goods inventory consisted of 1,350 units and 1,190 units respectively
Q1. Calculate company manufacturing overhead for the year
Q2. Calculate comp cost of goods manufactured
Q3. Compute comp cost of goods sold
Q4. Determine net income assuming 40% tax rate
Q5. Determine number of comleted units manufactured during the year
Q6. Build spreadsheet- how the solution will change if indirect labour is 221,000 and factory cost 679,000