Cost and sales information for the most recent fiscal year are shown below.WALLACE RIVER COMPANYCost and Sales InformationFor the Year Ended December 31Purchases of raw materialsRaw materials inventory,beginningRaw materials inventory, endingDepreciation, factoryInsurance, factoryDirect labourMaintenance, factoryAdministrative expenseSalesUtilities, factorySupplies, factorySelling expenseAdvertising expenseIndirect labour, factoryWork in process inventory,beginning.72,400510,00027,0001,00082,40022,40065,0007,000Work in process inventory,ending30,000Finished goods inventory,beginning10,000Finished goods inventory, ending 40,000Direct materials:Raw materials inventory, beginning$ 96,00016,000Required:1. Prepare a schedule of cost of goods manufactured.Manufacturing overhead:23,00045,600WALLACE RIVER COMPANYSchedule of Cost of Goods ManufacturedFor the Year Ended December 31Total overhead costsTotal manufacturing costs5,00066,00030,000Cost of goods manufactured$ 16,00016,000$ 16,000016,00016,000$ 16,000 2. Prepare an Income statement.WALLACE RIVER COMPANYIncome StatementFor the Year Ended December 31Cost of goods sold:Selling and administrative expenses:Direct materialsFactorydepreciationCost PerUnitDirect materialsFactorydepreciation3. Assume that the company produced 10,000 units of product during the year. What was the average cost per unit fordirect materials? What was the average cost per unit for factory depreciation? (Round your answers to 2 decimalplaces.)0Cost PerUnit$$Total Cost004. Assume that the company expects to produce and sell 15,000 units of product during the coming year. What averagecost per unit and what total cost would you expect the company to incur for direct materials and for factory depreciationat this level of activity? Assume that raw materials costs charged by suppliers will not change next year. For factorydepreciation, assume that the company uses straight-line depreciation and that the factory equipment has five years ofuseful life remaining. (Round your answers to 2 decimal places.)00

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Cost and sales information for the most recent fiscal year are shown below. WALLACE RIVER COMPANY Cost and Sales Information For the Year Ended December 31 Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Depreciation, factory Insurance, factory Direct labour Maintenance, factory. Administrative expense Sales Utilities, factory Supplies, factory Selling expense Advertising expense Indirect labour, factory Work in process inventory, beginning 82,400 22,400 65,000 7,000 Work in process inventory, ending 30,000 Finished goods inventory, beginning 10,000 Finished goods inventory, ending 40,000 Direct materials: Raw materials inventory, beginning $ 96,000 16,000 Required: 1. Prepare a schedule of cost of goods manufactured. Manufacturing overhead: 23,000 45,600 WALLACE RIVER COMPANY Schedule of Cost of Goods Manufactured For the Year Ended December 31 $ 16,000 Total overhead costs Total manufacturing costs 5,000 66,000 30,000 72,400 510,000 27,000 1,000 Cost of goods manufactured 16,000 $ 16,000 0 16,000 16,000 $ 16,000

Cost and sales information for the most recent fiscal year are shown below. WALLACE RIVER COMPANY Cost and Sales Information For the Year Ended December 31 Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Depreciation, factory Insurance, factory Direct labour Maintenance, factory. Administrative expense Sales Utilities, factory Supplies, factory Selling expense Advertising expense Indirect labour, factory Work in process inventory, beginning 82,400 22,400 65,000 7,000 Work in process inventory, ending 30,000 Finished goods inventory, beginning 10,000 Finished goods inventory, ending 40,000 Direct materials: Raw materials inventory, beginning $ 96,000 16,000 Required: 1. Prepare a schedule of cost of goods manufactured. Manufacturing overhead: 23,000 45,600 WALLACE RIVER COMPANY Schedule of Cost of Goods Manufactured For the Year Ended December 31 $ 16,000 Total overhead costs Total manufacturing costs 5,000 66,000 30,000 72,400 510,000 27,000 1,000 Cost of goods manufactured 16,000 $ 16,000 0 16,000 16,000 $ 16,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
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