The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: 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 following selected information was extracted from the 20x1 accounting records of Lone Oak Products: 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
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 24E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...
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The following selected information was extracted from the 20x1 accounting records of Lone Oak Products:
| Raw material purchases | $ | 175,000 | |
| Direct labor | 254,000 | ||
| Indirect labor | 109,000 | ||
| Selling and administrative salaries | 133,000 | ||
| Building |
80,000 | ||
| Other selling and administrative expenses | 195,000 | ||
| Other |
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.
Compute the company’s cost of goods sold
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