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Please check my answers. Problem 2-24 Schedule of Cost of Goods Manufactured; Income Statement; Cost Behaviour (LO1, LO2, LO3, LO4, LO5) Carlton Manufacturing Company provided
Please check my answers.
Problem 2-24 Schedule of Cost of Goods Manufactured; Income Statement; Cost Behaviour (LO1, LO2, LO3, LO4, LO5) Carlton Manufacturing Company provided the following details about operations in February: $ Purchases of raw materials Maintenance, factory Direct labour Depreciation, factory equipment Indirect materials, factory Selling and administrative salaries Utilities, factory Sales commissions Insurance, factory equipment Depreciation, sales equipment Advertising expenses Rent, factory building 169,000 40,900 35, 100 60,200 3,650 46,400 28,600 18,800 4,650 22,600 114,000 The company also provided details regarding the balances in the inventory accounts at the beginning and end of the month as follows: End of Month Raw materials Work in process Finished goods Beginning of Month $ 38,000 29,200 21,500 Raw materials used in production cost $181,280, total overhead costs for the year were $210,560, the goods available for sale totalled $412,000, and the cost of goods sold totalled $356,500. Required: 1-a. Prepare a schedule of cost of goods manufactured of the company's income statement for the year. CARLTON MANUFACTURING Schedule of Cost of Goods Manufactured Direct materials: Raw materials inventory, beginning | $ 38,000 Add: Purchases of raw materials 169,000 Raw materials available for use 207,000 Deduct: Raw materials inventory, ending 25,720 Raw materials used in production Direct labour $ 181,280 35, 100 Manufacturing overhead: 60,200 Depreciation, factory equipment Indirect materials, factory Insurance, factory Maintenance, factory Rent, factory building Utilities, factory Total overhead costs Total manufacturing costs Add: Work in process inventory, beginning 3,650 4,650 40,900 72,560 28,600 210,560 426,940 29,200 456,140 65,640 390,500 Deduct: Work in process inventory, ending Cost of goods manufactured $ 1-b. Prepare a schedule cost of goods sold section of the company's income statement for the year. Carlton Manufacturing Schedule of Cost of Goods Sold Finished goods inventory, beginning $ Add: Cost of goods manufactured Goods available for sale Deduct: Finished goods inventory, ending Cost of goods sold $ 21,500 390,500 412,000 55,500 356,500 2. Assume that the dollar amounts given above are for the equivalent of 17,600 units produced during the year. Compute the average cost per unit for direct materials used, and compute the average cost per unit for rent on the factory building. (Round your answers to 2 decimal places.) Direct materials Rent, factory building Average cost 10.30 per unit 4.12 per unit 3. Assume that in the following year the company expects to produce 22,600 units. What average cost per unit and total cost would you expect to be incurred for direct materials, and for rent on the factory building? Direct materials are a variable cost and rent is a fixed cost. (Round "Unit cost" answers to 2 decimal places.) Direct materials Rent, factory building Unit cost $ 10.30 3.21 | Total cost $ 232,780 72,560|Step by Step Solution
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