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Creative Products Inc. incurred the following costs in alphabetical order

Creative Products Inc. incurred the following costs (in alphabetical order) during 2012 related to one of its products:
 

Administrative costs$  2,000

Advertising costs1,000

Direct material used8,000

Direct labor20,000

Factory equipment depreciation1,000

Factory rent5,000

Indirect labor3,000

Indirect materials2,000

 


During the year, 3,000 units were produced out of which 2,750 units were sold for $30 each.

Required:
 

A.Calculate the total product costs incurred for the year.

  

B.What is the product cost per unit?

  

C.What is cost of goods sold for the year?

  

D.What is net operating income for the year? (Ignore taxes)

86. The following information is available for the Brown Company for the month ended July 31:
 

Direct materials purchased$  21,000

Direct labor (2,500 hrs@$12)30,000

Indirect labor3,000

Indirect materials2,500

Office supplies expense100

Factory equipment depreciation2,000

Office equipment depreciation750

Administrative expenses20,000

Office utilities75

Factory utilities200

Marketing expense2,500

Sales revenue150,000

Sales commissions expense1,500

 

 

 Beginning Ending

Direct materials inventory$27,000 $  24,500

Work in process inventory25,000 29,000

Finished goods inventory22,000 15,000

 


Required:
 

A.Determine the direct materials used in July.

  

B.Determine cost of goods manufactured in July.

  

C.Determine cost of goods sold for July.

  

D.Prepare an income statement for July. (Ignore taxes)

Jan 09 2020 View more View Less

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