Prepare a schedule of the cost of goods manufactured for the year ended December 31, 2008 ii) Prepare an income statement for Synder Corp. for the year ended December 31, 2008 iii) What is the unit product cost if Synder manufactured 3,000 lamps for the year?
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Synder Corp., a lamp manufacturer, provide the following information for the year ended December 2008:
Inventories Beginning Ending
Materials $50,000 $25,000
Work in process $100,000 $65,000
Finished goods $ 40,000 $43,000
Other information:
Materials purchases $155,000 Indirect Labour $30,000
Insurance on plant $20,000 Direct Labour $120,000
Sales salaries expense $48,000 Admin Expense $52,000
Sales Revenue $550,700
Requirements:
- i) Prepare a schedule of the cost of goods manufactured for the year ended December 31, 2008
- ii) Prepare an income statement for Synder Corp. for the year ended December 31, 2008
iii) What is the unit product cost if Synder manufactured 3,000 lamps for the year?
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