Hi, Can I please have help with what I got wrong? Thank you!
Various cost and sales data for Meriwell Company for the just completed year follow: Finished goods inventory, beginning Finished goods inventory, ending Depreciation, factory Administrative expenses Utilities, factory Maintenance, factory Supplies, factory Insurance, factory Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Direct labour Indirect labour Work-in-process inventory, beginning Work-in-process inventory, ending Sales Selling expenses $ 27,000 54,000 21,000 103,000 9,000 61,000 12,000 4,000 132,000 13,000 7,000 77,000 15,000 24,000 26,000 535,000 76,000 Required: 1. Prepare a schedule of cost of goods manufactured. Answer is not complete. MERIWELL COMPANY Schedule of Cost of Goods Manufactured For the Year Just Completed Direct materials: Raw materials inventory, beginning o$ 13,000 Add: Purchases of raw materials 132,000 Raw materials available for use 145,000 Deduct: Raw materials inventory, 7,000 ending Raw materials used in production Direct labour Manufacturing overhead: Insurance, factory 4,000 Indirect labour 15,000 Utilities, factory 9,000 Supplies, factory 12,000 Maintenance, factory 61,000 $ 138,000 77,000 Total overhead costs Total manufacturing costs Add: Work in process inventory, ending X 101,000 316,000 24,000 340,000 26,000 E Deduct: Work in process inventory, E ending Cost of goods manufactured $ 314,000 2. Prepare an income statement. Answer is complete but not entirely correct. MERIWELL COMPANY Income Statement For the Year Just Completed Sales $ 535,000 $ Cost of goods sold: Finished goods inventory, beginning Add: Cost of goods manufactured Goods available for sale Deduct: Finished goods inventory, ending Gross margin Less operating expenses: Administrative expenses Selling expenses 27,000 314,000 341,000 54,000 287,000 248,000 X 103,000 76,000 179,000 69,000 Net income $ 3. Assume that the company produced the equivalent of 10,000 units of product during the year just completed. What was the average cost per unit for direct materials and factory depreciation? (Round your answers 2 to decimal places.) Answer is complete and correct. Direct materials $ $ Average Cost 13.80 per unit 2.10 per Factory depreciation unit 4. Assume that the company expects to produce 20,000 units of product during the coming year. What average cost per unit and what total cost would you expect the company to incur for direct materials at this level of activity? For factory depreciation? (In preparing your answer, assume that direct materials are a variable cost and that depreciation is a fixed cost; also, assume that depreciation is computed on a straight-line basis.) (Round your "Average Cost" answers 2 to decimal places.) & Answer is complete but not entirely correct. Average Cost Total Cost Direct materials $ 13.80 per $ 276,000 Factory $ 2.10 $ 42,000 depreciation
