Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Part 1 Canine Nutritionists is a manufacturer of grains for dogs. The following information pertains to operations during the 2021 calendar year. Inventory Data:
Part 1 Canine Nutritionists is a manufacturer of grains for dogs. The following information pertains to operations during the 2021 calendar year. Inventory Data: 1/1/2021 Purchases 31/12/2021 Raw Materials $750,000 $4,330,000 $807,000 Indirect Materials 55,000 320,000 71,500 Work in Progress 924,000 n/a 814,750 n/a 1,720,200 Finished Goods 1,142,600 The following additional information is also available: Sales Revenue Direct Factory Labor $14,776,000 4,371,000 Indirect Factory Labor 1,232,250 Total Depreciation 1 400,000 Total Utilities 2 525,000 Distribution & Customer Service Costs 76,800 Insurance on Plant & Equipment 585,000 Property Taxes 3 90,000 Administrative Wages & Salaries 1,076,000 57,700 Advertising Expenses Sales Commission 5% of Sales Revenue Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and administrative costs. 2 Of the total utilities, 75% relates to manufacturing and 25% relates to general and administrative costs. The property taxes should be shared: 85% manufacturing & 15% general & administrative costs. Required: a) Calculate the raw material used by Canine Nutritionists. (2 marks) b) Calculate the indirect materials used by Canine Nutritionists (2 marks) c) What is the total manufacturing overhead cost incurred by Canine Nutritionists during the period? (3 marks) (3 marks) d) Determine the prime cost & conversion cost of the product manufactured. e) Prepare a schedule of cost of goods manufactured for the year ended December 31, 2021, clearly showing total manufacturing cost & total manufacturing costs to account for. (5 marks) f) What is the unit product cost if Canine Nutritionists manufactured 18,500 bags of grains for the year? (2 marks) g) How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising business? (3 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started