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Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm Kildeer Company makes easels for artists. During the last calendar year, a total of 38,000 easels were made, and 39,000 were sold for $56 each. The actual unit cost is as follows: $15.00 Direct materials Direct labor Variable overhead Fixed overhead Ending units Dollar amount $ Total unit cost $42.00 The selling expenses consisted of a commission of $0.80 per unit sold and advertising co-payments totaling $91,500. Administrative expenses, all fixed, equaled $179,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $130,200 for 3,100 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. Feedback. 6.00 Feedback Remember that cost of goods manufactured increases finished goods inventory. 2. Prepare a cost of goods sold statement. Kildeer Company Statement of Cost of Goods Sold For the Year Ended December 31 7.00 Cost of goods manufactured Add: Beginning finished goods inventory Cost of goods available for sale Less: Ending finished goods inventory Cost of goods sold 14.00 Commissions Sales Cost of goods sold Gross margin Less operating expenses: Operating income Fondback See Cornerstone 2.3. 3. Prepare an absorption-costing income statement. In addition to dollar amounts, enter the amounts as a percent, rounded to two decimal places. For example, .5235 would be 52.35% and you would enter 52.35 as your answer. Kildeer Company Income Statement: Absorption Costing For the Year Ended December 31 Advertising co-pays Administrative expenses $ $ $ $ Percent $% % $% % $ %

Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm Kildeer Company makes easels for artists. During the last calendar year, a total of 38,000 easels were made, and 39,000 were sold for $56 each. The actual unit cost is as follows: $15.00 Direct materials Direct labor Variable overhead Fixed overhead Ending units Dollar amount $ Total unit cost $42.00 The selling expenses consisted of a commission of $0.80 per unit sold and advertising co-payments totaling $91,500. Administrative expenses, all fixed, equaled $179,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $130,200 for 3,100 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. Feedback. 6.00 Feedback Remember that cost of goods manufactured increases finished goods inventory. 2. Prepare a cost of goods sold statement. Kildeer Company Statement of Cost of Goods Sold For the Year Ended December 31 7.00 Cost of goods manufactured Add: Beginning finished goods inventory Cost of goods available for sale Less: Ending finished goods inventory Cost of goods sold 14.00 Commissions Sales Cost of goods sold Gross margin Less operating expenses: Operating income Fondback See Cornerstone 2.3. 3. Prepare an absorption-costing income statement. In addition to dollar amounts, enter the amounts as a percent, rounded to two decimal places. For example, .5235 would be 52.35% and you would enter 52.35 as your answer. Kildeer Company Income Statement: Absorption Costing For the Year Ended December 31 Advertising co-pays Administrative expenses $ $ $ $ Percent $% % $% % $ %

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 16E: Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels...
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Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm Kildeer Company makes easels for artists. During the last calendar year, a total of 38,000 easels were made, and 39,000 were sold for $56 each. The actual unit cost is as follows: Direct materials Direct labor Ending units Dollar amount $ Variable overhead Fixed overhead Total unit cost $42.00 The selling expenses consisted of a commission of $0.80 per unit sold and advertising co-payments totaling $91,500. Administrative expenses, all fixed, equaled $179,000. There were no beginning and ending work-in-process inventories. Beginning finished goods. inventory was $130,200 for 3,100 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. $15.00 6.00 7.00 Feedback Remember that cost of goods manufactured increases finished goods inventory. 2. Prepare a cost of goods sold statement. 14.00 Kildeer Company Statement of Cost of Goods Sold Commissions For the Year Ended December 31 Cost of goods manufactured Add: Beginning finished goods inventory Cost of goods available for sale Less: Ending finished goods inventory Cost of goods sold Feedback See Cornerstone 2.3 3. Prepare an absorption-costing income statement. In addition to dollar amounts, enter the amounts as a percent, rounded to two decimal places. For example, .5235 would be 52.35% and you would enter 52.35 as your answer. Kildeer Company Income Statement: Absorption Costing For the Year Ended December 31 Operating income Feedback See Cornerstone 2.4 Sales Cost of goods sold Gross margin Less operating expenses: Advertising co-pays Administrative expenses $ $ $ $ Percent $ % % $ % % $ %
Transcribed Image Text:Prime Cost, Conversion Cost, Preparation of Income Statement: Manufacturing Firm Kildeer Company makes easels for artists. During the last calendar year, a total of 38,000 easels were made, and 39,000 were sold for $56 each. The actual unit cost is as follows: Direct materials Direct labor Ending units Dollar amount $ Variable overhead Fixed overhead Total unit cost $42.00 The selling expenses consisted of a commission of $0.80 per unit sold and advertising co-payments totaling $91,500. Administrative expenses, all fixed, equaled $179,000. There were no beginning and ending work-in-process inventories. Beginning finished goods. inventory was $130,200 for 3,100 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. $15.00 6.00 7.00 Feedback Remember that cost of goods manufactured increases finished goods inventory. 2. Prepare a cost of goods sold statement. 14.00 Kildeer Company Statement of Cost of Goods Sold Commissions For the Year Ended December 31 Cost of goods manufactured Add: Beginning finished goods inventory Cost of goods available for sale Less: Ending finished goods inventory Cost of goods sold Feedback See Cornerstone 2.3 3. Prepare an absorption-costing income statement. In addition to dollar amounts, enter the amounts as a percent, rounded to two decimal places. For example, .5235 would be 52.35% and you would enter 52.35 as your answer. Kildeer Company Income Statement: Absorption Costing For the Year Ended December 31 Operating income Feedback See Cornerstone 2.4 Sales Cost of goods sold Gross margin Less operating expenses: Advertising co-pays Administrative expenses $ $ $ $ Percent $ % % $ % % $ %
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