(1)

1) Pan Demic, Inc. (PDI) manufactures and sells cast iron skillets. A finished skillet sells for $40 and costs $15 to manufacture. PDI uses one raw material, iron ore, which is buys for $8/pound. Skillet Forgers heat the iron ore and form it into skillets. Forgers are paid $55/hour.

During the period, PDI purchased 800 pounds of Iron Ore. At the end of the period, they transferred 1,000 pounds of Iron Ore to WIP. They used 150 hours of direct labor and incurred $12,400 of Factory Overhead.

PDI ended the period with $4,850 in WIP and 210 skillets in Finished Goods.

Prepare the Schedule of Cost of Goods Manufactured for PDI.

Do not use dollar signs. Use whole numbers only (no decimal places)

Statement of Cost of Goods ManufacturedDirect materials usedDirect labor$8,250Factory overhead$12,400Manufacturing costs for the period$23,250WIP beginning inventoryWIP ending inventory$4,850Total Cost of goods manufactured (Transferred to Finished Goods)$21,400

2)

PDI Balance SheetAccountAmountRaw Materials Inventory$2,400WIP Inventory$4,700Finished Goods Inventory$3,150Total Inventory$10,250

Based on your work above, compete the Income Statement through Gross Profit for PDI

Do not use the dollar sign ($). Use whole numbers only (no decimal places).

PDI Income StatementAccountAmountSalesCost of Goods SoldGross Profit$31,250

What is PDI's Gross Margin (gross profit %) (carry to two decimal places)

3)

PDI Schedule of Raw MaterialsAccountDollar AmountRaw Materials Beginning Inventory$1,000Purchases$4,000Raw materials available for use$5,000Raw Materials Ending Inventory$2,400Direct Materials Used (transferred to WIP)$2,600

Based on your work above for Period 2, compete the Income Statement through Gross Profit for PDI

Do not use the dollar sign ($). Use whole numbers only (no decimal places).

PDI Income StatementAccountAmountSalesCost of Goods SoldGross Profit

4)

PDI Balance SheetAccountAmountRaw Materials InventoryWIP InventoryFinished Goods Inventory$3,150Total Inventory