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 . . . . . . .. . . . . $83600 Raw materials inventory, beginning. . . . . . . $8000 Raw materials inventory, ending. .. . . . . .$ 15000 Depreciation, factory . . . . . . . . . . . . . . . . $35000 Insurance, factory . . . . . . . . . . . . . . . . . . $4900 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . $58000 Maintenance, factory . . . . . . . . . . . . . . . $29500 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $660000 Utilities, factory . . . . . . . . . . . . . . . . . . . . . $26000 Supplies, factory . . . . . . . . . . . . . . . . . . . . $1800 Selling expenses . . . . . . . . . . . . . . . . . . . $79000 Administrative expenses . . . . . . . . . . . . . $67400 Indirect labor . . . . . . . . . . . . . . . . . . . . $63400 Work in process inventory, beginning . . $7000 Work in process inventory, ending . . . $29900 Finished goods inventory, beginning . . . $10700 Finished goods inventory, ending . . . . $40000 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.
(I) In the box provided below, explain to the companys president any difference in the average costs per unit between (E) and (G) above.
$ $ numeric response (A) Direct Materials Cost Beginning inventory of raw materials (+) Purchases of raw materials (Ending inventory of raw materials Direct materials costs numeric response numeric response numeric response $ $ numeric response numeric response numeric response (B) Cost of goods manufactured schedule text response text response text response (+) Manufacuting overheads Depreciation, factory text response text response text response text response text response numeric response numeric response numeric response numeric response numeric response numeric response Total Overheads text response text response text response Cost of goods manufactured numeric response numeric response numeric response numeric response numeric response $ $ (C) Cost of goods sold schedule text response text response text response text response Cost of goods sold numeric response numeric response numeric response numeric response numeric response $ $ $ numeric response numeric response numeric response (D) Income Statement text response text response Gross Profit (-) Selling and administrative expenses text response text response Total selling and administrative expenses numeric response numeric response numeric response numeric response Total selling and administrative expenses text response numeric response (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 activityStep by Step Solution
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