Question
Various cost and sales data for Meriwell Company for the just completed year appear below: Purchases of raw materials . . . . . .
Various cost and sales data for Meriwell Company for the just completed year appear below: Purchases of raw materials . . . . . . .. . . . . $87900 Raw materials inventory, beginning. . . . . . . $10000 Raw materials inventory, ending. .. . . . . .$ 16000 Depreciation, factory . . . . . . . . . . . . . . . . $37000 Insurance, factory . . . . . . . . . . . . . . . . . . $4600 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . $58000 Maintenance, factory . . . . . . . . . . . . . . . $28800 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $640000 Utilities, factory . . . . . . . . . . . . . . . . . . . . . $25200 Supplies, factory . . . . . . . . . . . . . . . . . . . . $1900 Selling expenses . . . . . . . . . . . . . . . . . . . $79400 Administrative expenses . . . . . . . . . . . . . $69200 Indirect labor . . . . . . . . . . . . . . . . . . . . $63700 Work in process inventory, beginning . . $7000 Work in process inventory, ending . . . $29500 Finished goods inventory, beginning . . . $10300 Finished goods inventory, ending . . . . $39000 Using the tables below prepare: (A) The direct material costs (or cost of raw materials consumed; (B) the cost of goods manufactured schedule; (C) the cost of goods sold schedule (D) the income statement. [USE THE ANSWER BOX 2.5 (A) to (D) below. DONT PUT SIGNS OR SYMBOLS IN NUMERICAL INPUT BOXES, SIMPLY INPUT NUMBERS]
(E) Assume that the company produced the equivalent of 10,000 units of product during the year. What was the average cost per unit for direct materials? (F) As a continuation of (E), what was the average cost per unit for factory depreciation? (G) Assume that the company expects to produce 15,000 units of product during the coming year. What average cost per unit would you expect the company to incur for direct materials at this level of activity? (H) As a continuation to (G). what average cost per unit would you expect the company to incur for factory depreciation at this level of activity? (1) In the box provided below, explain to the company's president any difference in the average costs per unit between (E) and (G) above. (A) Direct Materials Cost $ $ Beginning inventory of raw materials numeric response (+) Purchases of raw materials numeric response (Ending inventory of raw materials numeric response Direct materials costs numeric response (B) Cost of goods manufactured schedule $ $ text response numeric response text response numeric response text response numeric response (+) Manufacuting overheads Depreciation, factory numeric response text response numeric response text response numeric response text response numeric response text response numeric response text response numeric response Total Overheads numeric response text response numeric response text response numeric response text response numeric response Cost of goods manufactured numeric response (C) Cost of goods sold schedule $ $ text response numeric response text response numeric response text response numeric response text response numeric response Cost of goods manufactured numeric response (D) Income Statement $ $ text response numeric response text response numeric response Gross Profit numeric response Selling and administrative expenses text response numeric response text response numeric response Total selling and administrative expenses numeric response text response numeric response
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