Flow of manufacturing costs through the accounts. The following data related to the manufacturing activities of the
Question:
Flow of manufacturing costs through the accounts. The following data related to the manufacturing activities of the Cornell Company during June:
June 1 June 30 Raw Materials Inventory . .
Factory Supplies Inventory Work-in-Process Inventory Finished Goods Inventory .
46,900 $ 43,600 7,600 7,700 10,900 115,200 76,700 71,400 It incurred factory costs during the month as follows:
Raw Materials Purchased $429,000 Supplies Purchased 22,300 Labor Services Received 362,100 Heat, Light, and Power 10,300 Insurance 4,200 It experienced expirations of previous factory acquisitions and prepayments as follows:
Depreciation on Factory Equipment $36,900 Prepaid Rent Expired 3,600 Other information included the following:
Sales $1,350,000 Selling and Administrative Expenses 246,900 Interest Expense 47,100 Income Tax Rate 40%
a. Calculate the cost of raw materials and factory supplies used during June.
b. Calculate the cost of units completed during June and transferred to the finished goods storeroom.
c. Calculate the cost of goods sold during June.
d. Calculate the amount of net income for the month of June. The income tax rate is 40 percent.
Step by Step Answer:
Financial Accounting Introduction To Concepts Methods And Uses
ISBN: 9780324222975
11th Edition
Authors: Clyde P. Stickney, Roman L. Weil