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1. What is the PER UNIT cost for Direct Materials? 2. What is the PER UNIT cost for Factory Rent? 3. What is the expected
1. What is the PER UNIT cost for Direct Materials?
2. What is the PER UNIT cost for Factory Rent?
3. What is the expected TOTAL Direct Material Cost next year?
4. What is the expected TOTAL Factory Rent next year? (Factory Rent is a fixed cost)
5. What was the conversion cost this year?
6. What was the Cost of Goods Manufactured this year?
7. What was the PRIME COST this year?
$110,000 $8,000 Selling & Administrative Salaries Insurance, Factory Utilities, Factory Purchases of Raw Materials $45,000 $290,000 $60,000 Indirect Labor $80,000 Advertising Expense Cleaning Supplies, Factory Sales Commissions $7,000 $50,000 $120,000 $30,000 Rent, Factory Building Maintenance, Factory Total Manufacturing Costs Goods Available for Sale $683,000 $740,000 $660,000 Cost of Goods Sold BEGINNING ENDING Raw Materials Inventory $40,000 $10,000 $35,000 ?? Work in Progress Inventory Finished Goods Inventory ?? $50,000 Units produced this year = 40,000 units Units expected to be produced next year = 50,000 units
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