Sales Direct labor cost Raw material purchases Selling expense Administrative expenses 875,000 165,000 129,000 48,750 146,250 Manufacturing overhead applied to work in process 180,000 Inventories: Beginning Ending Raw materials 18,000 15,000 Work in process Finished goods 20,000 15,000 9,000 11,000

Sales Direct labor cost Raw material purchases Selling expense Administrative expenses 875,000 165,000 129,000 48,750 146,250 Manufacturing overhead applied to work in process 180,000 Inventories: Beginning Ending Raw materials 18,000 15,000 Work in process Finished goods 20,000 15,000 9,000 11,000

Name: Calculate the following:1. Raw materials used2. Prime cost3. Conversio
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Description: Calculate the following:1. Raw materials used2. Prime cost3. Conversion cost SalesDirect labor costRaw material purchasesSelling expenseAdministrative expenses875,000165,000129,00048,750146,250Manufacturing overhead applied to work in process180,000I

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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SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Maupin Manufacturing Company. Prepare a schedule of cost of goods manufactured for the year ended December 31, 20--. Assume that all materials inventory items are direct materials. Work in process, January 1 77,000 Materials inventory, January 1 31,000 Materials purchases 35,000 Materials inventory, December 31 26,000 Direct labor 48,000 Overhead 20,000 Work in process, December 31 62,000
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Communication The controller of New Wave Sounds Inc. prepared the following product profitability report for management, using activity-based costing methods for allocating both the factory overhead and the marketing expenses. As such, the controller has confidence in the accuracy of this report. Home Theater Speakers Wireless Speakers Wireless Headphones Total Sales 1,500,000 1,200,000 900,000 3,600,000 Cost of goods sold 1,050,000 720,000 810,000 2,580,000 Gross profit 450,000 480,000 90,000 1,020,000 Marketing expenses 600,000 120,000 72,000 792,000 Income from operations (150,000) 360,000 18,000 228,000 In addition, the controller interviewed the vice president of marketing, who provided the following insight into the company's three products: The home theater speakers are an older product that is highly recognized in the marketplace. The wireless speakers are a new product that was just recently bunched. The wireless headphones are a new technology that has no competition in the marketplace, and it is hoped that they will become an important future addition to the companys product portfolio. Initial indications are that the product is well received by customers. The controller believes that the manufacturing costs for all three products are in line with expectations. Based on the information provided: 1. Calculate the ratio of gross profit to sales and the ratio of income from operations to sales for each product. 2. Write a brief (one page) memo using the product profitability report and the calculations in (1) to make recommendations to management with respect to strategies for the three products.
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