Cost Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together
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Question:
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 | $250,000 |
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 | 20,000 |
Headquarters | 18,000 |
Utilities for factory | 34,000 |
Utilities for sales office | 2,400 |
Administrative salaries | 150,000 |
Indirect labor salaries | 153,000 |
Sales office salaries | 90,000 |
Beginning balance, raw materials | 127,000 |
Beginning balance, work in process | 124,000 |
Beginning balance, finished goods | 84,000 |
Ending balance, raw materials | 105,000 |
Ending balance, work in process | 130,000 |
Ending balance, finished goods | 79,000 |
Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.
6. Prepare an income statement for last year. Show the percentage of sales that each line item represents. When required, round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35.
Brody Company | ||
Income Statement | ||
For Last Year | ||
Percent | ||
$ | % | |
% | ||
$ | % | |
Less: Operating expenses | ||
% | ||
% | ||
$ | % |
Posted Date: