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Problem 2 - 2 2 Schedule of Cost of Goods Manufactured; Income Statement [ LO 1 , LO 2 , LO 3 , LO 4
Problem Schedule of Cost of Goods Manufactured; Income Statement LO LO LO LO Cost and sales information for the most recent fiscal year are shown below: WALLACE RIVER COMPANY Cost and Sales Information For the Year Ended December Purchases of raw materials $ Raw materials inventory, beginning Raw materials inventory, ending Depreciation, factory Insurance, factory Direct labour Maintenance, factory Administrative expense Sales Utilities, factory Supplies, factory Selling expense Advertising expense Indirect labour, factory Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending Required: Prepare a schedule of cost of goods manufactured. Prepare an income statement. Assume that the company produced units of product during the year. What was the average cost per unit for direct materials? What was the average cost per unit for factory depreciation? Round your answers to decimal places. Assume that the company expects to produce and sell units of product during the coming year. What average cost per unit and what total cost would you expect the company to incur for direct materials and for factory depreciation at this level of activity? Assume that raw materials costs charged by suppliers will not change next year. For factory depreciation, assume that the company uses straightline depreciation and that the factory equipment has five years of useful life remaining. Round your answers to decimal places.
Problem Schedule of Cost of Goods Manufactured; Income Statement LO LO LO LO
Cost and sales information for the most recent fiscal year are shown below:
WALLACE RIVER COMPANY
Cost and Sales Information
For the Year Ended December
Purchases of raw materials $
Raw materials inventory, beginning
Raw materials inventory, ending
Depreciation, factory
Insurance, factory
Direct labour
Maintenance, factory
Administrative expense
Sales
Utilities, factory
Supplies, factory
Selling expense
Advertising expense
Indirect labour, factory
Work in process inventory, beginning
Work in process inventory, ending
Finished goods inventory, beginning
Finished goods inventory, ending
Required:
Prepare a schedule of cost of goods manufactured.
Prepare an income statement.
Assume that the company produced units of product during the year. What was the average cost per unit for direct materials? What was the average cost per unit for factory depreciation? Round your answers to decimal places.
Assume that the company expects to produce and sell units of product during the coming year. What average cost per unit and what total cost would you expect the company to incur for direct materials and for factory depreciation at this level of activity? Assume that raw materials costs charged by suppliers will not change next year. For factory depreciation, assume that the company uses straightline depreciation and that the factory equipment has five years of useful life remaining. Round your answers to decimal places.
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