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Problem 2 (15 points) The following cost and inventory data were taken from the records of the Beca Company for the year 2021: Costs incurred:
Problem 2 (15 points) | |||||
The following cost and inventory data were taken from the records of the Beca Company for the year 2021: | |||||
Costs incurred: | |||||
Depreciation, factory equipment | 30,000 | ||||
Depreciation, office equipment | 7,000 | ||||
Indirect materials (comes from raw materials) | 6,200 | ||||
Maintenance, factory equipment | 20,000 | ||||
Utilities, factory | 8,000 | ||||
Sales commissions | 30,000 | ||||
Indirect labor | 54,500 | ||||
Rent, factory building | 70,000 | ||||
Purchases of raw materials (net) | 124,000 | ||||
Direct labor cost | 86,000 | ||||
Advertising expense | 90,000 | ||||
Sales | 615,000 | ||||
Inventories: | |||||
January 1, 2021 | December 31,2021 | ||||
Raw Materials | 10,200 | 11,500 | |||
Work in Process | 9,900 | 21,000 | |||
Finished goods | 49,000 | 24,000 | |||
Required: | |||||
(a) Show computation of direct materials used in production for 2021 | |||||
(b) Show the schedule and calculation of the cost of goods manufactured for 2021. | |||||
(c) Prepare a cost of goods sold statement/schedule for 2021. | |||||
(d) Prepare an income statement for 2021 | |||||
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