Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Raw materials purchases $280,000 Direct labor 140,000 Depreciation on factory equipment 45,000 Depreciation on factory building 30,000 Depreciation on headquarters building 60,000 Factory insurance 15,000 Property taxes: Factory 20,000 Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 2,400 Administrative salaries 150,000 Indirect labor salaries 159,000 Sales office salaries 90,000 Beginning balance, raw materials 121,000 Beginning balance, work in process 124,000 Beginning balance, finished goods 84,000 Ending balance, raw materials 105,000 Ending balance, work in process 130,000 Ending balance, finished goods 79,000 Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.
Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Raw materials purchases $280,000 Direct labor 140,000 Depreciation on factory equipment 45,000 Depreciation on factory building 30,000 Depreciation on headquarters building 60,000 Factory insurance 15,000 Property taxes: Factory 20,000 Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 2,400 Administrative salaries 150,000 Indirect labor salaries 159,000 Sales office salaries 90,000 Beginning balance, raw materials 121,000 Beginning balance, work in process 124,000 Beginning balance, finished goods 84,000 Ending balance, raw materials 105,000 Ending balance, work in process 130,000 Ending balance, finished goods 79,000 Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...
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Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year:
| Raw materials purchases | $280,000 |
| Direct labor | 140,000 |
| 45,000 | |
| Depreciation on factory building | 30,000 |
| Depreciation on headquarters building | 60,000 |
| Factory insurance | 15,000 |
| Property taxes: | |
| Factory | 20,000 |
| Headquarters | 18,000 |
| Utilities for factory | 34,000 |
| Utilities for sales office | 2,400 |
| Administrative salaries | 150,000 |
| Indirect labor salaries | 159,000 |
| Sales office salaries | 90,000 |
| Beginning balance, raw materials | 121,000 |
| Beginning balance, work in process | 124,000 |
| Beginning balance, finished goods | 84,000 |
| Ending balance, raw materials | 105,000 |
| Ending balance, work in process | 130,000 |
| Ending balance, finished goods | 79,000 |
Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.
Transcribed Image Text:5. Prepare a cost of goods sold statement for last year.
Brody Company
Statement of Cost of Goods Sold
For Last Year
6. Prepare an income statement for last year. Show the percentage of sales that each line item represents. When required,
round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to
.8835 and entered as 88.35.
Brody Company
Income Statement
For Last Year
Percent
%
%
%
Less: Operating expenses
%
%
Transcribed Image Text:1. Calculate the direct materials used in production for last year.
2. Calculate total prime cost.
3. Calculate total conversion cost.
4. Prepare a cost of goods manufactured statement for last year.
Brody Company
Statement of Cost of Goods Manufactured
For Last Year
Total manufacturing cost
Calculate the unit product cost. If required, round your answer to the nearest cent.
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