Carlton Manufacturing Company provided the following details about operations in February Purchases of raw materials $ 157,000 Maintenance, factory 39,700 Direct labour 34,300 Depreciation, factory equipment 58,600 Indirect materials, factory 3,450 Selling and administrative salaries 45,200 Utilities, factory 27,800 Sales commissions 18,400 Insurance, factory equipment 4,450 Depreciation, sales equipment 21,800 Advertising expenses 112,000 Rent, factory building The company also provided details regarding the balances in the inventory accounts at the beginning and end of the month as follows Beginning of Month End of Month Raw materials $ 34,000 Work in process 27,600 Finished goods 19,500 Raw materials used in production cost $166,320, total overhead costs for the year were $198,080, the goods available for sale totalled $396,000, and the cost of goods sold totalled $344,500 Required 1 a Prepare a schedule of cost of goods manufactured of the companys income statement for the year CARLTON MANUFACTURING Schedule of Cost of Goods Manufactured Direct materials Manufacturing overhead Total overhead costs Total manufacturing costs Cost of goods manufactured 1 b Prepare a schedule cost of goods sold section of the companys income statement for the year Carlton Manufacturing Schedule of Cost of Goods Sold 2 Assume that the dollar amounts given above are for the equivalent of 16,800 units produced during the year Compute the average cost per unit for direct materials used, and compute the average cost per unit for rent on the factory building (Round your answers to 2 decimal places ) Average cost Direct materials per unit Rent, factory building per unit 3 Assume that in the following year the company expects to produce 21,800 units What average cost per unit and total cost would you expect to be incurred for direct materials, and for rent on the factory building Direct materials are a variable cost and rent is a fixed cost (Round Unit cost answers to 2 decimal places ) Unit cost Total cost Direct materials Rent, factory building

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Posted on May 30, 2024

Carlton Manufacturing Company provided the following details about operations in February: Purchases of raw materials $ 157,000 Maintenance, factory 39,700 Direct labour 34,300 Depreciation, factory

Carlton Manufacturing Company provided the following details about operations in February:


Purchases of raw materials	$	157,000
Maintenance, factory		39,700
Direct labour		34,300
Depreciation, factory equipment		58,600
Indirect materials, factory		3,450
Selling and administrative salaries		45,200
Utilities, factory		27,800
Sales commissions		18,400
Insurance, factory equipment		4,450
Depreciation, sales equipment		21,800
Advertising expenses		112,000
Rent, factory building		?

The company also provided details regarding the balances in the inventory accounts at the beginning and end of the month as follows:

	Beginning of Month		End of Month
Raw materials	$	34,000		?
Work in process		27,600		?
Finished goods		19,500		?

Raw materials used in production cost $166,320, total overhead costs for the year were $198,080, the goods available for sale totalled $396,000, and the cost of goods sold totalled $344,500.

Required:

1-a. Prepare a schedule of cost of goods manufactured of the companys income statement for the year.

CARLTON MANUFACTURING
Schedule of Cost of Goods Manufactured
Direct materials:






Manufacturing overhead:






Total overhead costs
Total manufacturing costs



Cost of goods manufactured

1-b. Prepare a schedule cost of goods sold section of the companys income statement for the year.

Carlton Manufacturing
Schedule of Cost of Goods Sold

2. Assume that the dollar amounts given above are for the equivalent of 16,800 units produced during the year. Compute the average cost per unit for direct materials used, and compute the average cost per unit for rent on the factory building. (Round your answers to 2 decimal places.)

	Average cost
Direct materials		per unit
Rent, factory building		per unit

3. Assume that in the following year the company expects to produce 21,800 units. What average cost per unit and total cost would you expect to be incurred for direct materials, and for rent on the factory building? Direct materials are a variable cost and rent is a fixed cost. (Round "Unit cost" answers to 2 decimal places.)