Canine Nutritionists is a manufacturer of grains for dogs. The following information pertains to operations during the 2021 calendar year. Inventory Data: Raw Materials Indirect Materials Work in Progress Finished Goods 1/1/2021 Purchases 31/12/2021 $750,000 $4,330,000 320,000 55,000 924,000 1,142,600 The following additional information is also available: Sales Revenue Direct Factory Labor Indirect Factory Labor Total Depreciation ¹ Total Utilities ² Distribution & Customer Service Costs Insurance on Plant & Equipment Property Taxes 3 n/a n/a Administrative Wages & Salaries Advertising Expenses Sales Commission $807,000 71,500 814,750 1,720,200 $14,776,000 4,371,000 1,232,250 400,000 525,000 76,800 585,000 90,000 1,076,000 57,700 5% of Sales Revenue 1 Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and administrative costs. 2 Of the total utilities, 75% relates to manufacturing and 25% relates to general and administrative costs. 3 The property taxes should be shared: 85% manufacturing & 15% general & administrative costs. Required: a) Calculate the raw material used by Canine Nutritionists. b) Calculate the indirect materials used by Canine Nutritionists c) What is the total manufacturing overhead cost incurred by Canine Nutritionists during the period?
Canine Nutritionists is a manufacturer of grains for dogs. The following information pertains to operations during the 2021 calendar year. Inventory Data: Raw Materials Indirect Materials Work in Progress Finished Goods 1/1/2021 Purchases 31/12/2021 $750,000 $4,330,000 320,000 55,000 924,000 1,142,600 The following additional information is also available: Sales Revenue Direct Factory Labor Indirect Factory Labor Total Depreciation ¹ Total Utilities ² Distribution & Customer Service Costs Insurance on Plant & Equipment Property Taxes 3 n/a n/a Administrative Wages & Salaries Advertising Expenses Sales Commission $807,000 71,500 814,750 1,720,200 $14,776,000 4,371,000 1,232,250 400,000 525,000 76,800 585,000 90,000 1,076,000 57,700 5% of Sales Revenue 1 Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and administrative costs. 2 Of the total utilities, 75% relates to manufacturing and 25% relates to general and administrative costs. 3 The property taxes should be shared: 85% manufacturing & 15% general & administrative costs. Required: a) Calculate the raw material used by Canine Nutritionists. b) Calculate the indirect materials used by Canine Nutritionists c) What is the total manufacturing overhead cost incurred by Canine Nutritionists during the period?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 2SEB: SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Sanchez Welding and...
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Transcribed Image Text:Part 1
Canine Nutritionists is a manufacturer of grains for dogs. The following information pertains to operations during
the 2021 calendar year.
Inventory Data:
Raw Materials
Indirect Materials
Work in Progress
Finished Goods
1/1/2021 Purchases 31/12/2021
$750,000 $4,330,000
320,000
55,000
924,000
1,142,600
The following additional information is also available:
Sales Revenue
Direct Factory Labor
Indirect Factory Labor
Total Depreciation 1
Total Utilities 2
Distribution & Customer Service Costs
Insurance on Plant & Equipment
Property Taxes 3
Administrative Wages & Salaries
Advertising Expenses
Sales Commission
n/a
n/a
$807,000
71,500
814,750
1,720,200
$14,776,000
4,371,000
1,232,250
400,000
525,000
76,800
585,000
90,000
1,076,000
57,700
5% of Sales Revenue
1 Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and
administrative costs.
2 Of the total utilities, 75% relates to manufacturing and 25% relates to general and administrative costs.
3 The property taxes should be shared: 85% manufacturing & 15% general & administrative costs.
Required:
a) Calculate the raw material used by Canine Nutritionists.
b) Calculate the indirect materials used by Canine Nutritionists
c) What is the total manufacturing overhead cost incurred by Canine Nutritionists during the period?
d) Determine the prime cost & conversion cost of the product manufactured.
e) Prepare a schedule of cost of goods manufactured for the year ended December 31, 2021, clearly
showing total manufacturing cost & total manufacturing costs to account for.
f) What is the unit product cost if Canine Nutritionists manufactured 18,500 bags of grains for the year?
g) How does the format of the income statement for a manufacturing concern differ from the income
statement of a merchandising business?
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