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The below information is from the records of Cedar Products Inc. for the quarter ended September 30. The company produces one single product. Costs: Subscription
| The below information is from the records of Cedar Products Inc. for the quarter ended September 30. | ||||
| The company produces one single product. | ||||
| Costs: | ||||
| Subscription costs | $ 124,500.00 | |||
| Direct labour | $ 156,000.00 | |||
| Indirect labour wages | $ 62,000.00 | |||
| Raw materials purchases | $ 325,000.00 | |||
| Building rent (production uses 70% of the space, | ||||
| administrative & sales offices use the remainder) | $ 36,000.00 | |||
| Property taxes on factory building | $ 2,000.00 | |||
| Selling and administrative salaries | $ 65,000.00 | |||
| Other selling and administrative expenses | $ 12,000.00 | |||
| Raw materials | Work in process | Finished goods | ||
| Start of quarter balance | $ 12,000.00 | $ 20,000.00 | $ - | |
| End of quarter balance | $ 126,500.00 | $ 280,500.00 | ? | |
| The finished goods inventory is being carried at the average unit production cost for the year. | ||||
| #units produced this year | 40,000 | |||
| # units sold this year | ? | |||
| Sales in dollars, at a selling price per unit of $15 | $ 480,000.00 | |||
| Required: | ||||
| A. Prepare a Schedule of Cost of Goods Manufactured for the quarter, in good form. | ||||
| B. Compute the number of units and unit cost in finished goods inventory at the end of the quarter. | ||||
| C. Calculate the Gross Margin for the quarter, in good form. |
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