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La Sim Manufacturing Company provided the following information for the year 2019 Inventories Direct Materials Work-in-Process Finished Goods 31/12/2018 31/12/2019 $84,000 $60,000 26,000 54,000 94,000
La Sim Manufacturing Company provided the following information for the year 2019 Inventories Direct Materials Work-in-Process Finished Goods 31/12/2018 31/12/2019 $84,000 $60,000 26,000 54,000 94,000 89.000 Other information: Sales Revenue Raw materials purchased Direct labor Indirect materials Plant supervisor's salary Office cleaner's wages Depreciation on factory plant & equipment Plant utilities Special Design Cost Insurance Office Utilities Depreciation on delivery truck Administrative salaries Salesmen commission Advertising 1.998,000 360,000 470,000 60,000 49,000 8,000 89,000 130,000 25,700 120,000 42,100 18,000 78,000 26,000 10,200 Of the total insurance, 75% relates to manufacturing & 25% relates to general & administrative costs. Requirements: (A) What was the amount of direct materials used in production? (B) What was the amount of factory overhead costs? (C) What is the prime cost and conversion cost of the product? (D) Prepare a schedule of cost of goods manufactured for the year ended December 31, 2019, clearly showing total manufacturing costs & total manufacturing costs to account for. (E) Prepare an income statement for La Sim Manufacturing for the year ended December 31, 2019, clearly showing cost of goods sold. (F) During the year, La Sim Manufacturing Company produced 2.550 units of product. What was the unit product cost
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