7. Snickerdoodle Inc. has provided the following relating to the most recent month (September 30, 2016) of operations, for their main product, cookies.(20)

	Baker's salary	13,000
	General & administrative expenses	13,500
	Indirect materials	10,500
	Production Supervisor, Salary	14,000
	Raw material purchases	21,000
	Rent on production factory	12,000
	Rent, retail store	11,000
	Sales	140,000
	Utilities on production factory	10,500
	Utilities, retail store	10,500
	Wages, retail staff	13,000
Inventory Balances:	Beginning	Ending
Raw Materials	11,000	12,000
Work in Process	12,500	14,500
Finished Goods	11,000	13,000

Calculate the following: 1. Raw materials used in production 2. Total manufacturing overhead 3. Total manufacturing costs 4. Cost of Goods Manufactured 5. Cost of Goods Sold 6. Gross Margin 7. Operating Income (Loss) 8. Prime Costs 9. Conversion Costs

( use the guided grid below to calculate your answers)

	Raw materials, beginning	11000
	Purchases of raw materials	21000
	Raw materials available	32000
	Raw materials inventory, ending	12000
	1.Raw materials used in production		20000
	Baker's salary
	2. Manufacturing Overhead:
	Rent on production factory
	Utilities on production factory
	Production Supervisor, Salary
	Indirect materials
	3. Total manufacturing costs
	Add: WIP inventory, beginning
	Less: WIP inventory, ending
	4. Cost of Goods Manufactured
	Sales
	Finished goods inventory, beginning
	Add: Cost of Goods Manufactured
	Finished goods available for sale
	Less: Finished goods inventory, ending
	Cost of Goods Sold
	Gross Margin
	Rent, retail store
	Wages, retail staff
	Utilities, retail store
	General & administrative expenses
	Total operating expenses
	Net Income
Prime Costs (RM used + Direct Labor)
Conversion Costs (Direct Labor + MOH)