The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Required:1. Calculate Lone Oak’s manufacturing overhead for the year.2. Calculate Lone Oak’s cost of goods manufactured.3. Compute the company’s cost of goods sold.4. Determine net income for 20x1, assuming a 30% income tax rate.5. Determine the number of completed units manufactured during the year.6. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: indirect labor is $115,000 and other factory costs amount to $516,000. Raw material purchases$ 175,000Direct labor254,000Indirect labor109,000Selling and administrative salaries133,000Building depreciation*80,000Other selling and administrative expenses195,000Other factory costs .344,000Sales revenue ($130 per unit)1,495,000*Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling andadministrative functions.Inventory data:January 1December 31Raw material..$ 15,800$18,200Work in process.35,70062,100Finished goods*111,10097,900*The January 1 and December 31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.

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Raw material purchases $ 175,000 Direct labor 254,000 Indirect labor 109,000 Selling and administrative salaries 133,000 Building depreciation* 80,000 Other selling and administrative expenses 195,000 Other factory costs . 344,000 Sales revenue ($130 per unit) 1,495,000 *Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions. Inventory data: January 1 December 31 Raw material.. $ 15,800 $18,200 Work in process. 35,700 62,100 Finished goods* 111,100 97,900 *The January 1 and December 31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.

Raw material purchases $ 175,000 Direct labor 254,000 Indirect labor 109,000 Selling and administrative salaries 133,000 Building depreciation* 80,000 Other selling and administrative expenses 195,000 Other factory costs . 344,000 Sales revenue ($130 per unit) 1,495,000 Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions. Inventory data: January 1 December 31 Raw material.. $ 15,800 $18,200 Work in process. 35,700 62,100 Finished goods 111,100 97,900 *The January 1 and December 31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...

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