Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year:
Raw materials purchases .......... $250,000
Direct labor ............... 140,000
Depreciation on factory equipment ......... 45,000
Depreciation on factory building.......... 30,000
Depreciation on headquarters building ........ 50,000
Factory insurance .............. 15,000
Property taxes:
Factory ............... 20,000
Headquarters ............... 18,000
Utilities for factory ............... 34,000
Utilities for sales office .......... 1,800
Administrative salaries .......... 150,000
Indirect labor salaries ............... 156,000
Sales office salaries ............... 90,000
Beginning balance, raw materials .......... 124,000
Beginning balance, work in process .......... 124,000
Beginning balance, finished goods .......... 84,000
Ending balance, raw materials .......... 102,000
Ending balance, work in process .......... 130,000
Ending balance, finished goods .......... 82,000
Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.
Required:
1. Calculate the direct materials used in production for last year.
2. Calculate total prime cost.
3. Calculate total conversion cost.
4. Prepare a cost of goods manufactured statement for last year. Calculate the unit product cost.
5. Prepare a cost of goods sold statement for last year.
6. Prepare an income statement for last year. Show the percentage of sales that each line item represents.