Question
Managerial Accounting 1. Lompac Products manufactures a variety of products in its factory. Data for the most recent month's operations follow: Beginning raw materials inventory
Managerial Accounting
1. Lompac Products manufactures a variety of products in its factory. Data for the most recent month's operations follow:
Beginning raw materials inventory
$
340,000
Purchases of raw materials
870,000
Ending raw materials inventory
210,000
Direct labour
245,000
Manufacturing overhead
560,000
Beginning work-in-process inventory
150,000
Ending work-in-process inventory
170,000
Required:
Prepare a schedule of cost of goods manufactured for the company for the month.
2. Last month Bims, a wedding dress retailer, had total sales of $3,000,000, selling expenses of $315,000, and administrative expenses of $385,000. The company had beginning merchandise inventory of $250,000, purchased additional merchandise inventory for $950,000, and had ending merchandise inventory of $100,000.
Required:
Prepare an income statement for the company for the month in good form.
3. Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows:
Amount
Per Unit
Direct materials
$
6.00
Direct labour
$
3.50
Variable manufacturing overhead
$
1.50
Fixed manufacturing overhead
$
4.00
Fixed selling expense
$
3.00
Fixed administrative expense
$
2.00
Sales commissions
$
1.00
Variable administrative expense
$
0.50
Required:
a.If 15,500 units are produced, what is the total amount of manufacturing manufacturing cost, overhead cost incurred to support this level of production?
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