The company manufactures a single product, cleverly named Product X. The following information is available for the calendar year 2018 just completed, during which they produced and sold 200,000 units. Sales for the year was $2,400,000. During the year, the company paid a sales commission of 5 percent of sales. The corporate income tax rate was 20%. Direct materials purchases $300,000Direct labor 140,000Depreciation - factory equipment45,000Depreciation - factory building30,000Depreciation - headquarters building50,000Factory insurance 15,000Property taxes: Factory 20,000 Headquarters 18,000Utilities - factory 34,000Utilities - sales 1,800Administrative salaries 150,000Indirect labor salaries 156,000Sales office salaries 90,000 Inventory Information12/31/201712/31/2018Raw materials$124,000$152,000Work in process124,000130,000Finished Goods109,000118,904 REQUIRED:Prepare the Schedule of Cost of Goods ManufacturedPrepare the Schedule of Cost of Goods SoldPrepare an income statement for 2018, acceptable for GAAP in good form.

Cost sheet represents the statement of cost incurred on production of goods consisting of prime…

Answered: The company manufactures a single…

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

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The company manufactures a single product, cleverly named Product X. The following information is available for the calendar year 2018 just completed, during which they produced and sold 200,000 units. Sales for the year was $2,400,000. During the year, the company paid a sales commission of 5 percent of sales. The corporate income tax rate was 20%.

Direct materials purchases		$300,000
Direct labor		140,000
Depreciation - factory equipment	45,000
Depreciation - factory building	30,000
Depreciation - headquarters building	50,000
Factory insurance		15,000
Property taxes:
Factory		20,000
Headquarters		18,000
Utilities - factory		34,000
Utilities - sales		1,800
Administrative salaries		150,000
Indirect labor salaries		156,000
Sales office salaries		90,000

Inventory Information	12/31/2017	12/31/2018
Raw materials	$124,000	$152,000
Work in process	124,000	130,000
Finished Goods	109,000	118,904

REQUIRED:

Prepare the Schedule of Cost of Goods Manufactured
Prepare the Schedule of Cost of Goods Sold
Prepare an income statement for 2018, acceptable for GAAP in good form.

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