PART 1 G-Force Woodcraft manufactures customized household furnishings. The company uses a perpetual inventory system and has a highly labour intensive production process, so it assigns manufacturing overhead based on direct labour cost. G-Force expects to incur $2,205,000 of manufacturing overhead costs and estimated direct labour costs of $3,150,000 during 2016. At the end of December 2018, G-Force reported work in process inventory (Job 551) of $93,000 The following events occurred during January 2019.i) Purchased materials on account, $392,000ii) Incurred manufacturing wages of $400,000iii) Requisitioned direct materials and used direct labour in manufacturing                            Direct Materials           Direct LabourJob 551                $70,200                        $61,200Job 552                $97,500                        $115,600Job 553                $105,300                      $78,200Job 554                $117,000                      $85,000iv) Issued…

Problem 17: Income Statement MARK Inc. is engaged in the business of manufacturing basket balls. The company employs actual costing system. The company uses a single account for direct and indirect materials. The company provided the following data for the year ended December 31, 2016: Gross sales Sales returns Gross purchases Purchase returns, allowance and discount Freight in Total costs of factory labor Depreciation of factory assets Expired insurance on factory assets Utilities expense on factory Total administrative expenses Total marketing expenses 9,500,000 500,000 1,000,000 200,000 400,000 1,000,000 300,000 100,000 500,000 2,000,000 3,000,000 Inventories are as follows: January 1 100,000 December 31 Raw materials Work in process Finished goods 300,000 200,000 600,000 500,000 The following additional data are provided: 1. The net profit ratio of the company before income tax for the year ended December 31, 2016 was 10% of net sales. 2. The direct labor cost for the year was four…

Figure 2 Hapsburg Manufacturing purchases components produced by Little Company in the manufacture of its main product. For the next year, Hapsburg expects to use a total of 20,000 parts. Hapsburg typically orders 2,000 units at a time. The cost of placing an order is GHS100, and the average annual cost of carrying one unit of inventory is GHS5. 18. Refer to Figure 2. Hapsburg's total ordering cost is a. GHS1,000. b. GHS5,000. c. GHS10,000. d. GHS500.