Managerial Accounting Lab #6 Cost flow relationships--manufacturing statement Spring 2021 Knick knacks R Us is a manufacturer of art and craft items. Information for the first month of operations is as follows: Sales Indirect Labor Materials Purchased Gross Profit Indirect materials used Cost of Goods Manufactured Materials Inventory at end of first month Other factory overhead Work-in-Process inventory at end of first month All Beginning Inventories Direct Labor 850,000 62,000 315,000 235,000 33,000 640,000 20,000 13,500 30,000 0 ????? REQUIRED: Prepare the manufacturing statement required below using Excel and answer the accompanying questions directly on your excel spreadsheet. Be sure to SHOW ALL WORK so that your logic in answering the items can be followed (Items 3, 5, and 6). Be sure to number and label your answers. 1 What was the amount of direct materials used? 2 What was the amount of direct labor cost? 3 What was the amount of total factory overhead? 4 Determine the amount of cost of goods sold (show all work). 5 Determine the amount of ending finished goods inventory (show all work). Turn in this sheet on top with your excel printout directly behind this page. Classify the following list of costs that were incurred in the production and sale of boats by placing an "x" in the proper column List any assumptions that you make in your cost classification process at the bottom of the page. Product Costs Period Costs Direct Material Cost Direct Labor Cost Factory Overhead Cost Selling Expense Administrative Expense a. b. d e. Item Cost of metal hardware for boats, such as ornaments and tie- down grasps. Power used by sanding equipment. e Yearly cost of maintenance contract for robotics equipment Premiums on business interruption insurance in case of a natural disaster. Masks for use by sanders in smoothing boat hulls. E Hourly wages of assembly-line workers, g. Oil to lubricate factory equipment h. Straight-line depreciation on factory equipment i. Wood paneling for use in interior boat trim. j Commissions to sales representatives, based upon the number of boats sold k. Steering wheels 1. Special advertising campaign in Bass World. Cost of boat for "grand prize" promotion in local bass tournament, n. Memberships for key executives in the Bass World Association 0. Navigation and fishing instruments for boats Cost of electrical wiring for boats. Executive end-of-year bonuses. Salary of shop supervisor Decals for boat hulls. Annual fee for Jim Bo Wilks, a famous fisherman, to promote the boats. u Legal department costs for the year. Paint for boats. w. Salary of president of company. X Fiberglass for producing the boat hull. Depreciation of salespersons vehicle m. p 4 r. s t V y
