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	60,000
Factory insurance	15,000
Property taxes:
Factory	20,000
Headquarters	18,000
Utilities for factory	34,000
Utilities for sales office	1,800
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	85,000

Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.

Required:

1. Calculate the direct materials used in production for last year.

2. Calculate total prime cost.

3. Calculate total conversion cost.

4/ Prepare a cost of goods manufactured statement for last year.

5. Prepare a cost of goods sold statement for last year.

6. Prepare an income statement for last year showing the percentage of sales that each line item represents.