Page 2 I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1.125,000.00 750,000.00 $ 375,000.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $30.00 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) $3.00 Administrative Expenses: Fixed Variable @ $2.00 Total Selling and Administrative Expenses: Net Profit $ 23,000.00 75,000.00 $ 98,000.00 $ 42,000.00 50,000.00 92,000.00 $ 190,000.00 185,000.00 I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 @ $16.00 3000 @ $30.00 0 90,000.00 $ 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 $ 13,200.00 213.410.00 $ 54,000.00 $ 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147,410.00 $ 159.410.00 213,410,00 PART 4 Process Costing - First-In First-Out General Information The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in process as of January 1 were 3,300 figurines at a cost of $55,275.00. Of this amount, $52,800.00 was from raw materials added, $1,650.00 for labor and $825.00 for overhead. These 3,300 figurines were assumed to be 25.00% complete as to labor and overhead. During January 23,500 units were started. $379,055.00 of materials and $45,550.00 of labor costs were incurred. The 8,000 figurines that were in process at the end of January were assumed to be 60.00% complete to labor and overhead All figurines in January passed inspection MOLDING Physical flow of Units Wort Process Beginning Units Started this period Unt Account for (1201) Totalansferred out Won Process Ending Total Accounted for 112 (12.04 12.06 Lun Material Round the Gent Units conversion found to three pla (12.07) Total cost in the beginning inventory found to two places, (12.00 Total cost of Material this periodHound to two places, Total cost of Conversion this period Round to two places, (12.101 Total cost to account for (Round to two places, ...) (12.11) com per equivalent unit of Material is period wound to seven test [12.12) (12.13 Cost per equivalent unit of Conversion this period Round to seven places (12.14 red, material and convention (Round to two places, 3200, 301, 39) (12.15 Cost of the ending inventory material and convesi (12.161 Total Cont accounted for (Hound to two places, sau, p.) Page 2 I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1.125,000.00 750,000.00 $ 375,000.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $30.00 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) $3.00 Administrative Expenses: Fixed Variable @ $2.00 Total Selling and Administrative Expenses: Net Profit $ 23,000.00 75,000.00 $ 98,000.00 $ 42,000.00 50,000.00 92,000.00 $ 190,000.00 185,000.00 I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 @ $16.00 3000 @ $30.00 0 90,000.00 $ 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 $ 13,200.00 213.410.00 $ 54,000.00 $ 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147,410.00 $ 159.410.00 213,410,00 PART 4 Process Costing - First-In First-Out General Information The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in process as of January 1 were 3,300 figurines at a cost of $55,275.00. Of this amount, $52,800.00 was from raw materials added, $1,650.00 for labor and $825.00 for overhead. These 3,300 figurines were assumed to be 25.00% complete as to labor and overhead. During January 23,500 units were started. $379,055.00 of materials and $45,550.00 of labor costs were incurred. The 8,000 figurines that were in process at the end of January were assumed to be 60.00% complete to labor and overhead All figurines in January passed inspection MOLDING Physical flow of Units Wort Process Beginning Units Started this period Unt Account for (1201) Totalansferred out Won Process Ending Total Accounted for 112 (12.04 12.06 Lun Material Round the Gent Units conversion found to three pla (12.07) Total cost in the beginning inventory found to two places, (12.00 Total cost of Material this periodHound to two places, Total cost of Conversion this period Round to two places, (12.101 Total cost to account for (Round to two places, ...) (12.11) com per equivalent unit of Material is period wound to seven test [12.12) (12.13 Cost per equivalent unit of Conversion this period Round to seven places (12.14 red, material and convention (Round to two places, 3200, 301, 39) (12.15 Cost of the ending inventory material and convesi (12.161 Total Cont accounted for (Hound to two places, sau, p.)