Question
Spencer Company produced 200,000 cases of sports drinks during the past calendar year. Each case of 1-liter bottles sells for $36. Spencer had 2,500 cases
Spencer Company produced 200,000 cases of sports drinks during the past calendar year. Each case of 1-liter bottles sells for $36. Spencer had 2,500 cases of sports drinks in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 cases of sports drinks in finished goods inventory. Spencers accounting records provide the following information:
Purchases of direct materials | $2,360,000 |
Direct materials inventory, January 1 | 290,000 |
Direct materials inventory, December 31 | 110,000 |
Direct labor | 1,200,000 |
Indirect labor | 334,000 |
Depreciation, factory building | 525,000 |
Depreciation, factory equipment | 416,000 |
Property taxes on factory | 65,000 |
Utilities, factory | 150,000 |
Insurance on factory | 200,000 |
Salary, sales supervisor | 85,000 |
Commissions, salespersons | 214,000 |
Advertising | 500,000 |
General administration | 390,000 |
Work-in-process inventory, January 1 | 440,000 |
Work-in-process inventory, December 31 | 750,000 |
Finished goods inventory, January 1 | 107,500 |
Finished goods inventory, December 31 | 488,750 |
Required:
1. Prepare a cost of goods manufactured statement.
Spencer Company | ||
Statement of Cost of Goods Manufactured | ||
For the Year Ended December 31 | ||
Direct materials: | ||
$fill in the blank f721dbfc9025f8f_2 | ||
fill in the blank f721dbfc9025f8f_4 | ||
$fill in the blank f721dbfc9025f8f_6 | ||
fill in the blank f721dbfc9025f8f_8 | ||
$fill in the blank f721dbfc9025f8f_10 | ||
fill in the blank f721dbfc9025f8f_12 | ||
Manufacturing overhead: | ||
$fill in the blank f721dbfc9025f8f_14 | ||
fill in the blank f721dbfc9025f8f_16 | ||
fill in the blank f721dbfc9025f8f_18 | ||
fill in the blank f721dbfc9025f8f_20 | ||
fill in the blank f721dbfc9025f8f_22 | ||
fill in the blank f721dbfc9025f8f_24 | fill in the blank f721dbfc9025f8f_25 | |
Total manufacturing costs added | $fill in the blank f721dbfc9025f8f_26 | |
fill in the blank f721dbfc9025f8f_28 | ||
fill in the blank f721dbfc9025f8f_30 | ||
Cost of goods manufactured | $fill in the blank f721dbfc9025f8f_31 |
2. Compute the cost of producing one case of sports drink last year. If required, round your answer to the nearest cent.
$fill in the blank 702586f0d076fe7_1 per case
3. Prepare an income statement on an absorption-costing basis. Show the percentage of sales that each line item represents. Round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35.
Spencer Company | |||
Income Statement: Absorption Costing | |||
For the Year Ended December 31 | |||
Percent | |||
fill in the blank 78696700efdf03d_2 | fill in the blank 78696700efdf03d_3% | ||
Cost of goods sold: | |||
fill in the blank 78696700efdf03d_5 | |||
fill in the blank 78696700efdf03d_7 | |||
fill in the blank 78696700efdf03d_9 | |||
fill in the blank 78696700efdf03d_11 | fill in the blank 78696700efdf03d_12 | fill in the blank 78696700efdf03d_13% | |
fill in the blank 78696700efdf03d_15 | fill in the blank 78696700efdf03d_16 | ||
Less: Operating expenses: | |||
fill in the blank 78696700efdf03d_18 | |||
fill in the blank 78696700efdf03d_20 | |||
fill in the blank 78696700efdf03d_22 | fill in the blank 78696700efdf03d_23 | fill in the blank 78696700efdf03d_24% | |
fill in the blank 78696700efdf03d_26 | fill in the blank 78696700efdf03d_27% | ||
fill in the blank 78696700efdf03d_29 | fill in the blank 78696700efdf03d_30% |
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