Question
Consider the following information for Sanchez Corporation for the year ended December 31, 2022. Depreciation expenseAdministrative office $100,000 Depreciation expense -Plant and equipment 140,000 Property,
Consider the following information for Sanchez Corporation for the year ended December 31, 2022.
Depreciation expenseAdministrative office $100,000
Depreciation expense -Plant and equipment 140,000
Property, plant and equipment 6,000,000
Direct laborWages 600,000
Direct materials inventory, Dec. 31, 2022 50,000
Direct materials inventory, Jan. 1, 2022 40,000
Direct materials purchases 300,000
Finished goods inventory, Dec. 31, 2022 60,000
Finished goods inventory, Jan. 1, 2022 70,000
Heat, light & power - Plant 80,000
Indirect labor 90,000
Property taxesPlant 70,000
Sales representative's salaries 200,000
Cash 500,000
Retained earnings 2,000,000
Supervisor's salary-Plant 90,000
SuppliesAdministrative office 20,000
SuppliesPlant 50,000
Accounts payable 500,000
Accounts receivable 800,000
Work-in-Process inventory, Dec. 31, 2022 50,000
Work-in-Process inventory, Jan. 1, 2022 40,000
Required:
- Determine the cost of goods manufactured and the cost of goods sold for 2022.
- If 200,000 units were sold, what is the cost of goods manufactured per unit?
- How much would Sales for 2022 have been to generate an operating income of $200,000?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started