Question
Income Statement, Cost of Goods Manufactured Spencer Company produced 200,000 cases of sports drinks during the past calendar year. Each case of 1-liter bottles sells
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Income Statement, Cost of Goods Manufactured
Spencer Company produced 200,000 cases of sports drinks during the past calendar year. Each case of 1-liter bottles sells for $36. Spencer had 2,500 cases of sports drinks in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 cases of sports drinks in finished goods inventory. Spencers accounting records provide the following information:
Purchases of direct materials $2,340,000 Direct materials inventory, January 1 290,000 Direct materials inventory, December 31 110,000 Direct labor 1,200,000 Indirect labor 334,000 Depreciation, factory building 525,000 Depreciation, factory equipment 416,000 Property taxes on factory 65,000 Utilities, factory 150,000 Insurance on factory 200,000 Salary, sales supervisor 85,000 Commissions, salespersons 218,000 Advertising 500,000 General administration 390,000 Work-in-process inventory, January 1 440,000 Work-in-process inventory, December 31 750,000 Finished goods inventory, January 1 107,500 Finished goods inventory, December 31 488,750 Required:
1. Prepare a cost of goods manufactured statement.
Spencer Company Statement of Cost of Goods Manufactured For the Year Ended December 31 Direct materials: - Beginning inventory
- Beginning work in process
- Cost of goods manufactured
- Depreciation, factory building
- Depreciation, factory equipment
- Purchases
- Utilities, factory
$ - Add: Beginning work in process
- Add: Cost of goods manufactured
- Add: Depreciation, factory building
- Add: Ending inventory
- Add: Ending work in process
- Add: Indirect labor
- Add: Purchases
- Beginning work in process
- Ending inventory
- Ending work in process
- Materials available
- Purchases
- Total manufacturing costs added
- Utilities, factory
$ - Less: Beginning inventory
- Less: Beginning work in process
- Less: Cost of goods manufactured
- Less: Depreciation, factory building
- Less: Direct labor
- Less: Ending inventory
- Less: Ending work in process
- Cost of goods manufactured
- Depreciation, factory building
- Depreciation, factory equipment
- Direct labor
- Direct materials used in production
- Indirect labor
- Insurance on factory
$ - Beginning work in process
- Cost of goods manufactured
- Direct labor
- Ending inventory
- Ending work in process
- Insurance on factory
- Purchases
Manufacturing overhead: - Beginning inventory
- Beginning work in process
- Cost of goods manufactured
- Direct labor
- Ending inventory
- Indirect labor
- Purchases
$ - Beginning inventory
- Beginning work in process
- Depreciation, factory building
- Direct labor
- Ending inventory
- Ending work in process
- Purchases
- Beginning inventory
- Beginning work in process
- Cost of goods manufactured
- Depreciation, factory equipment
- Direct labor
- Ending inventory
- Ending work in process
- Beginning inventory
- Beginning work in process
- Direct labor
- Ending inventory
- Ending work in process
- Property taxes on factory
- Purchases
- Beginning inventory
- Beginning work in process
- Direct labor
- Ending inventory
- Ending work in process
- Purchases
- Utilities, factory
- Beginning inventory
- Beginning work in process
- Direct labor
- Ending inventory
- Ending work in process
- Insurance on factory
- Purchases
Total manufacturing costs added $ - Add: Beginning inventory
- Add: Beginning work in process
- Add: Ending inventory
- Add: Ending work in process
- Add: Property taxes on factory
- Add: Purchases
- Add: Utilities, factory
- Less: Beginning inventory
- Less: Beginning work in process
- Less: Direct labor
- Less: Ending inventory
- Less: Ending work in process
- Less: Indirect labor
- Less: Purchases
Cost of goods manufactured $ Feedback
2. Compute the cost of producing one case of sports drink last year. If required, round your answer to the nearest cent.
$ per case
Feedback
3. Prepare an income statement on an absorption-costing basis. Show the percentage of sales that each line item represents. 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.
Spencer Company Income Statement: Absorption Costing For the Year Ended December 31 Percent - Administrative expenses
- Commissions, salespersons
- Cost of goods sold
- Ending finished goods inventory
- Goods available for sale
- Salary, sales supervisor
- Sales
% Cost of goods sold: - Administrative expenses
- Advertising
- Beginning finished goods inventory
- Cost of goods manufactured
- Operating income
- Salary, sales supervisor
- Sales
- Add: Beg. finished goods inventory
- Add: Commissions, salespersons
- Add: Ending finished goods inventory
- Add: Goods available for sale
- Add: Operating income
- Add: Salary, sales supervisor
- Add: Sales
- Advertising
- Beginning finished goods inventory
- Commissions, salespersons
- Ending finished goods inventory
- Goods available for sale
- Operating income
- Salary, sales supervisor
- Less: Administrative expenses
- Less: Advertising
- Less: Beginning finished goods inventory
- Less: Commissions, salespersons
- Less: End. finished goods inventory
- Less: Goods available for sale
- Less: Gross margin
% - Gross margin
- Gross loss
Less: Operating expenses: - Beginning finished goods inventory
- End. finished goods inventory
- Goods available for sale
- Gross margin
- Operating income
- Salary, sales supervisor
- Sales
- Beginning finished goods inventory
- Commissions, salespersons
- Cost of goods manufactured
- End. finished goods inventory
- Goods available for sale
- Gross margin
- Sales
- Advertising
- Beginning finished goods inventory
- Cost of goods manufactured
- End. finished goods inventory
- Goods available for sale
- Gross margin
- Sales
% - Administrative expenses
- Beginning finished goods inventory
- End. finished goods inventory
- Goods available for sale
- Gross margin
- Net margin
- Sales
% - Beginning finished goods inventory
- Cost of goods manufactured
- Cost of goods sold
- Ending finished goods inventory
- Goods available for sale
- Operating income
- Sales
%
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