Problem 2 - 2 4 Schedule of Cost of Goods Manufactured; Income Statement; Cost Behaviour [ LO
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Problem Schedule of Cost of Goods Manufactured; Income Statement; Cost Behaviour LO LO LO LO LO
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
The company also provided details regarding the balances in the inventory accounts at the beginning and end of the month as follows:
Beginning of Month End of Month
Raw materials $
Work in process
Finished goods
Raw materials used in production cost $ total overhead costs for the month were $ the goods available for sale totalled $ and the cost of goods sold totalled $
Required:
a Prepare a schedule of cost of goods manufactured of the companys income statement for the month of February.
b Prepare a schedule cost of goods sold section of the companys income statement for the month of February.
Assume that the dollar amounts given above are for the equivalent of units produced during the month. 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 decimal places.
Assume that in the following month the company expects to produce 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 decimal places.
This part of the question is not part of your Connect assignment.
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
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