ACCT 3224 Lecture Notes - Lecture 12: Income Statement, Finished Good, Earnings Before Interest And Taxes
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Using the below financial statements, determine certainnumber of variable costs and a fixed costs for the month of Dec.2016 and calculate the following:
Breakeven point in units
Breakeven point in $S
Assume a target income and determine how many units you need tosell in order to make your target income.
LINDSEYâS LIP SETS
Schedule of Cost of Goods Manufactured
For the Year Ending December 31, 2016
Direct Materials: | |||
Beginning Raw Materials Inventory, Jan. 1 | $100,000 | ||
Plus: Net purchases of raw material | $200,000 | ||
Raw materials available | $300,000 | ||
Less: Ending raw materials inventory, Dec. 31 | $150,000 | ||
Raw materials transferred to production | $150,000 | ||
Direct Labor | $200,000 | ||
Manufacturing Overhead | |||
Indirect materials | $10,000 | ||
Indirectlabor | $45,000 | ||
FactoryDepreciation | $10,000 | $65,000 | |
Total manufacturing costs | $415,000 | ||
Beginning work in process inventory Jan.1 | $50,000 | ||
Cost of goods manufactured | $530,000 | ||
Less: Ending work in process inventory, Dec. 31 | $2,000 | ||
Cost of goods manufactured | $528,000 |
LINDSEYâS LIP SETS
Schedule of Cost of Goods Sold
For the Year Ending December 31 2016
Beginning finished goods inventory, Jan. 1 | $20,000 |
Plus: Cost of goods manufactured | $528,000 |
Goods available forsale | $548,000 |
Less: Finished goods inventory, Dec. 31 | $10,000 |
Cost of goodssold | $538,000 |
LINDSEYâS LIP SETS
Income Statement
For the Year Ending December 31 2016
Sales | $3,200,000 | ||
Cost of goods sold | $538,000 | ||
Gross profit | $2,662,000 | ||
Operating expenses | |||
Online shop selling | $24,000 | ||
General administrative | $10,000 | $34,000 | |
Net income | $2,628,000 |
Schedule of Cost of Goods Manufactured
Kelowna Plumbing Supplies shows the following data related toits December 31, 2017 fiscal year:
Raw materials inventory, January 1,2017 | $5,000 |
Raw materials inventory, December 31,2017 | 8,000 |
Work in process inventory, January 1,2017 | 23,000 |
Work in process inventory, December 31,2017 | 21,000 |
Finished goods inventory, January 1,2017 | 16,000 |
Finished goods inventory, December 31,2017 | 10,000 |
Advertising | 56,000 |
Factory supervisor's salary | 42,000 |
Company president's salary | 85,000 |
Property taxes - factory | 25,000 |
Depreciation - factory | 35,000 |
Factory maintenance | 7,000 |
Sales commissions | 32,000 |
Depreciation - office | 2,000 |
Utilities expense - factory | 23,000 |
Utilities expense - office | 11000 |
Purchases of raw materials | 148,000 |
Direct labour | 160,000 |
Required:
Based on the information above, prepare a schedule of cost ofgoods manufactured.
Problem 2
Smith Carlson Corporation provided the following list of costdata to its manufacturing operations for the month of October20X5.
Beginning raw materials inventory | 2,416,000 |
Raw materials purchased (net) | 5,863,750 |
Ending raw materials inventory | 2,045,500 |
Direct labor costs | 805,750 |
Indirect materials | 313,750 |
Indirect labor | 222,250 |
Factory utilities and maintenance | 1,140,000 |
Factory depreciation | 141,500 |
Other factory relatedoverhead | 61,000 |
Beginning work in process | 1,942,500 |
Ending work in process | 1,792,500 |
Arrange the cost data into a statement of cost of goodsmanufactures.
If Smith Carlson Corporation cost of goods sold for the monthwas $10,000,000, how much was the increase or decrease in finishedgoods inventory for the month of October
WORKSHEET #2
a)
SMITH CARLSON CORPORATION | |||
SCHEDULE OF COST OF GOODS MANUFACTURED | |||
For the month ending October 31, 20X5 | |||
Direct materials: | |||
$ - | |||
- | |||
$ - | |||
- | |||
Raw materials transferred to production | $ - | ||
Direct labor | - | ||
Factory overhead | |||
$ - | |||
- | |||
- | |||
- | |||
- | - | ||
Total manufacturing costs | $ - | ||
- | |||
$ - | |||
- | |||
Cost of goods manufactured | $ - | ||
b)