The following cost and inventory data are taken from the accounting records of King Company for the year ending 31/12/2021. They relate to 20,000 units produced. Units sold during the year were 18,000 units. Direct labor cost € 50,000 Indirect labor 30,000 Indirect materials cost 3,000 Selling and distribution costs 80,000 Administrative salaries 40,800 Purchases of direct materials 150,000 Other costs and expenses (60% factory / 40% sales and administration) 30,000 Factory Heat, water and power 25,000 Beginning of End of the year the year D/M inventory € 5,000 €12,000 Work in process inventory 9,000 4,000 Finished goods inventory 0 ? Required Prepare the schedule of the cost of goods manufactured What is the cost of producing one unit? King would like a profit of €100 from the sale of each unit. What should be the selling price per unit? Calculate the cost of the closing finished goods inventory Prepare the profit and loss for the year ended 31/12/2021
The following cost and inventory data are taken from the accounting records of King Company for the year ending 31/12/2021. They relate to 20,000 units produced. Units sold during the year were 18,000 units. Direct labor cost € 50,000 Indirect labor 30,000 Indirect materials cost 3,000 Selling and distribution costs 80,000 Administrative salaries 40,800 Purchases of direct materials 150,000 Other costs and expenses (60% factory / 40% sales and administration) 30,000 Factory Heat, water and power 25,000 Beginning of End of the year the year D/M inventory € 5,000 €12,000 Work in process inventory 9,000 4,000 Finished goods inventory 0 ? Required Prepare the schedule of the cost of goods manufactured What is the cost of producing one unit? King would like a profit of €100 from the sale of each unit. What should be the selling price per unit? Calculate the cost of the closing finished goods inventory Prepare the profit and loss for the year ended 31/12/2021
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 5E: Prepare a cost of goods sold budget for MacLaren Manufacturing Inc. for the year ended December 31,...
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The following cost and inventory data are taken from the accounting records of King Company for the year ending 31/12/2021. They relate to 20,000 units produced. Units sold during the year were 18,000 units.
- Direct labor cost € 50,000
- Indirect labor 30,000
- Indirect materials cost 3,000
- Selling and distribution costs 80,000
- Administrative salaries 40,800
- Purchases of direct materials 150,000
- Other costs and expenses
(60% factory / 40% sales and administration) 30,000
- Factory Heat, water and power 25,000
Beginning of End of
the year the year
D/M inventory € 5,000 €12,000
Work in process inventory 9,000 4,000
Finished goods inventory 0 ?
Required
- Prepare the schedule of the cost of goods manufactured
- What is the cost of producing one unit?
- King would like a profit of €100 from the sale of each unit. What should be the selling price per unit?
- Calculate the cost of the closing finished goods inventory
- Prepare the
profit and loss for the year ended 31/12/2021
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