TURBO HOMEWORK Turbo Company, a manufacturing itim, produces a single product. The following information has been taken from the company's production, sales, and cost records for the just completed year: TURBO COMPANY 30,000 7 ? $650,000 $50,000 80,000 60,000 160,000 50,000 35,000 Production in units Sales in units Ending finished goods inventory in units Sales in dollars Costs: Advertising Direct labor Indirect labor Raw materials purchased Building rent (80% Factory) Utilities, factory Royalty paid for use of patent, $1 per unit produced (Classify as MOH) Maintenance, factory Rent for special production equipment, $6,000 per year plus $0.10 per unit produced Selling and administrative salaries Other factory overhead costs Other selling and administrative expenses Inventories: ? 25,000 ? 140,000 11,000 20,000 Raw materials Work in progress Finished goods Beginning End of of Year Year $20,000 $10,000 30,000 40,000 0 ? Selling price per unit $25 Check figure: (1) Cost of goods manufactured $450,000 The finished goods inventory is being carried at the average unit production cost for the year. The selling price of the product is $25 per unit. 1. Compute the cost of goods manufactured for the year. 2. Compute the following: a. The number of units in the finished goods inventory at the end of the year. b. The cost of the units in the finished goods Inventory at the end of the year. 3. Prepare an income statement for the year. 32 Concord, Inc. manufactures ergonomically designed computer furniture. Concord uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: Job No. CC723 CH291 PS812 Item Computer caddy Chair Printer stand Units 20,000 10,000 29,000 Accumulated Cost $950,000 440,000 272,000 $1,662,000 On November 30, Concord's Direct Materials Inventory account totaled $671,000, and its Finished Goods Inventory totaled $3,486,400. Concord applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totaled $4,750,000, and the company planned to use 950,000 machine hours during the year. Through the first eleven months of the year, the company used a total of 840,000 machine hours, total manufacturing overhead amounted to $4.294,500, and Cost of Goods Sold was $8,760,250. For the purposes of this problem, ignore year-end disposition of over/under applied overhead. Concord purchased $638,000 in direct materials in December and incurred the following costs for jobs in process that month: Materials Machine Direct Labor Direct Labor Issued Hours Hours Cost CC723 $188,000 18,000 12,200 $125,400 CH291 $16.900 5,000 3,800 $45,200 PS812 $238.000 23,200 17.300 $211.500 DS444 $259,000 $140,000 Job No. 15,000 16,800 The following jobs were completed in December and transferred to the Finished Goods Inventory: Job No. CC723 CH291 Item Computer caddy Chair Desk Units 20,000 10,000 6,000 DS444 DS444 (a) Calculate the total cost of each of the four jobs worked on in December. CC723 CH291 PS812 Total Cost $ 1383600 $ 535900 $ 854800 505800 (b) Calculate the total manufacturing cost for December Total manufacturing cost $ 433600 (c) Calculate the cost of goods manufactured for December. Cost of goods manufactured $ 2425300 (d) Calculate the balance in the Work in Process Inventory account on December 31. Balance in work in process $ 854800 (a) Calculate the total cost of each of the four jobs worked on in December. CC723 CH291 PS812 Total Cost $ 1383600 $ 535900 $ DS444 854800 $ 505800 (b) Calculate the total manufacturing cost for December Total manufacturing cost $ 433600 (c) Calculate the cost of goods manufactured for December Cost of goods manufactured $ 2425300 (d) Calculate the balance in the Work in Process Inventory account on December 31. Balance in work in process $ 854800 (e) Assume that Concord sold 8,200 computer caddies, 10,000 chairs, and 4,500 desks in December. Calculate Cost of Goods Sold for the month of December and the ending Finished Goods Inventory balance on December 31. (For computation purpose round per unit rates to 2 decimal places, e.g. 3.54 Round final answers to decrial places, es. 45,000.) Cost of goods sold $ 1482526 Finished goods inventory $ 3907826