Selected account balances for the year ended December 31 are provided below for Superior Company 1 Selling and administrative salaries Insurance, factory Utilities, factory Purchases of raw materials Indirect labour Direct labour Advertising expense Cleaning supplies, factory Sales commissions Rent, factory building Maintenance, factory $111.000 6,600 64,800 2 64,000 75,6ee 73, eee 8,88 39,000 115,000 30,000 Inventory balances at the beginning and end of the year were as follows: Beginning of the Year $51.500 Raw materials Work in process Finished goods End of the Year $16,100 36,3ea 76.ee 43, eee The total manufacturing costs for the year were $704,000, and the cost of goods sold totalled $670,000. Required: 1.a. Prepare a schedule of cost of goods manufactured SUPERIOR COMPANY Schedule of Cost of Goods Manufactured For the Year Ended December 31 Direct materials Raw materials inventory, beginning $ 51,600 Add: Purchases of raw materials Raw materials available for us 51,600 Deduct: Raw materials inventory, ending 16.100 Raw materials used in production Direct labour s 35 500 75.600 1 SUPERIOR COMPANY Schedule of Cost of Goods Manufactured For the Year Ended December 31 Direct materials: Raw materials inventory beginning $ 51,600 Add: Purchases of raw materials Raw materials available for use 51,600 Deduct: Raw materials inventory, ending 16.100 Raw materials used in production Direct labour Manufacturing overhead: Indirect labour 64,000 Cleaning supplies, factory 8.000 Rent, factory building 115,000 Utilities, factory 64,800 5 35,500 75,600 251,800 362,900 Total overhead costs Total manufacturing sts Add: Work in process inventory, beginning Total work in process inventory Deduct: Work in process inventory, ending Cost of goods manufactured 362,900 $ 362.900 1.b. Prepare the cost of goods sold section of the company's income statement for the year. Assignment #1 - DUE OCT 30 i Seved ) 1.b. Prepare the cost of goods sold section of the company's income statement for the year 1 SUPERIOR COMPANY Income Statement (Partial) For the Year Ended December 31 Advertising expense Goods available for sale 0 Cost of goods sold $ D 2. Assume that the doi ar amounts given above are for the equivalent of 50,000 units produced during the year. Compute the average cost per unit for direct materials used and the average cost per unit for rent on the factory building. (Round your answers to 2 decimal places.) Direct materials Rent on the factory building Average Cost per unit per unit 3. Assume that in the following vear the company expects to produce 71.875 units. What average cost per unit and total cost would 2. Assume that the dollar amounts given above are for the equivalent of 50,000 units produced during the year. Compute the average cost per unit for direct materials used and the average cost per unit for rent on the factory building. (Round your answers to 2 decimal places.) Direct materials Rent on the factory building Average Cost per unit per unit 3. Assume that in the following year the company expects to produce 71,875 units. What average cost per unit and total cost would you expect to be incurred for direct materials? For rent on the factory building? (Assume that direct materials are a variable cost and that rent is a fixed cost.) (Round your "Average Cost" answers to 2 decimal places.) Total Cost Direct materials Rent on the factory building Average Cost per unit per unit 4. This part of the question is not part of your Connect assignment Prey 1 of 5 Next >
