Question
ALABAMA CORPORATION The company manufactures a single product, cleverly named Product X. The following information is available for the calendar year 2018 just completed, during
ALABAMA CORPORATION
The company manufactures a single product, cleverly named Product X. The following information is available for the calendar year 2018 just completed, during which they produced and sold 200,000 units. Sales for the year was $2,400,000. During the year, the company paid a sales commission of 5 percent of sales. The corporate income tax rate was 20%.
Direct materials purchases | $300,000 | |
Direct labor | 140,000 | |
Depreciation - factory equipment | 45,000 | |
Depreciation - factory building | 30,000 | |
Depreciation - headquarters building | 50,000 | |
Factory insurance | 15,000 | |
Property taxes: | ||
Factory | 20,000 | |
Headquarters | 18,000 | |
Utilities - factory | 34,000 | |
Utilities - sales | 1,800 | |
Administrative salaries | 150,000 | |
Indirect labor salaries | 156,000 | |
Sales office salaries | 90,000 |
Inventory Information | 12/31/2017 | 12/31/2018 |
Raw materials | $124,000 | $152,000 |
Work in process | 124,000 | 130,000 |
Finished Goods | 109,000 | 118,904 |
REQUIRED:
- Post all of the above a summary entries in T accounts.
- Compute the direct materials used in production..
- Compute the conversion cost.
- Prepare the Schedule of Direct Materials Used
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