Question
The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Raw material purchases $ 177,000 Direct labor 254,000 Indirect labor
The following selected information was extracted from the 20x1 accounting records of Lone Oak Products:
Raw material purchases | $ | 177,000 | |
Direct labor | 254,000 | ||
Indirect labor | 108,000 | ||
Selling and administrative salaries | 133,000 | ||
Building depreciation* | 80,000 | ||
Other selling and administrative expenses | 195,000 | ||
Other factory costs | 343,000 | ||
Sales revenue ($130 per unit) | 1,495,000 | ||
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*Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions.
Inventory data:
January 1 | December 31 | |||||
Raw material | $ | 15,900 | $ | 18,200 | ||
Work in process | 35,900 | 62,100 | ||||
Finished goods* | 111,100 | 97,900 | ||||
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*The January 1 and December 31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.
Required:
2. Calculate Lone Oaks cost of goods manufactured.
3. Compute the companys cost of goods sold.
4. Determine net income for 20x1, assuming a 30% income tax rate
5. Determine the number of completed units manufactured during the year.
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