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Cost Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody
Cost Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Raw materials purchases $280,000 Direct labor 140,000 Depreciation on factory equipment 45,000 Depreciation on factory building 30,000 Depreciation on headquarters building 45,000 Factory insurance 15,000 Property taxes: Factory Headquarters 20,000 18,000 Utilities for factory 34,000 Utilities for sales office 2,400 Administrative salaries 150,000 Indirect labor salaries 159,000 Sales office salaries 90,000 Beginning balance, raw materials 121,000 Beginning balance, work in process 124,000 Beginning balance, finished goods 84,000 Ending balance, raw materials Ending balance, work in process 105,000 130,000 85,000 Ending balance, finished goods Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.
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