The following selected information was extracted from the 20x1 accounting records of Lone Oak Products:

Inventory data:

Required:
1. Calculate Lone Oak’s manufacturing overhead for the year.
2. Calculate Lone Oak’s cost of goods manufactured.
3. Compute the company’s cost of goods sold.
4. Determine net income for 20x1, assuming a 30% income tax rate.
5. Determine the number of completed units manufactured during the year.
6. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements.
Show how the solution will change if the following data change: indirect labor is $115,000 and other factory costs amount to $516,000.
2. Cost of goods manufactured: $913,200 4. Net income: $154,420

Transcribed Image Text:

Raw material purchases Direct labor Indirect labor $ 175,000 254,000 109,000 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.