Question
Eroner Co. manufacturers one type of product. Last year, the company recorded the following: Manufacturing cost per unit $112 Prime cost per unit $68 Conversion
Eroner Co. manufacturers one type of product. Last year, the company recorded the following: Manufacturing cost per unit $112 Prime cost per unit $68 Conversion cost per unit $75 Total cost of goods sold $840,000 Sale price per unit $200 Total direct labour costs $400,000 Total selling and administrative expenses $480,000 Assume the company did not have any beginning or ending inventory for the year. Required (A) How many units were sold in the year? (B) What was the total cost of direct materials that were used in production? (C) What was the total cost of manufacturing overhead for the year? (D) What was the gross margin for the year? (E) What was the company's operating income for the year? (F) Describe the similarities and differences among the income statements of manufacturing firms, merchandising firms and service organizations?
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