1) Pan Demic, Inc. (PDI) manufactures and sells cast iron skillets. A finished skillet sells for $40 and costs $15 to manufacture. PDI uses one raw material, iron ore, which is buys for $8/pound. Skillet Forgers heat the iron ore and form it into skillets. Forgers are paid $55/hour.

During the period, PDI purchased 800 pounds of Iron Ore. At the end of the period, they transferred 1,000 pounds of Iron Ore to WIP. They used 150 hours of direct labor and incurred $12,400 of Factory Overhead.

PDI ended the period with $4,850 in WIP and 210 skillets in Finished Goods.

Prepare the Schedule of Cost of Goods Manufactured for PDI.

Do not use dollar signs. Use whole numbers only (no decimal places)

Statement of Cost of Goods Manufactured
Direct materials used
Direct labor	$8,250
Factory overhead	$12,400
Manufacturing costs for the period	$23,250
WIP beginning inventory
WIP ending inventory	$4,850
Total Cost of goods manufactured (Transferred to Finished Goods)	$21,400

2)

PDI Balance Sheet
Account	Amount
Raw Materials Inventory	$2,400
WIP Inventory	$4,700
Finished Goods Inventory	$3,150
Total Inventory	$10,250

Based on your work above, compete the Income Statement through Gross Profit for PDI

Do not use the dollar sign ($). Use whole numbers only (no decimal places).

PDI Income Statement
Account	Amount
Sales
Cost of Goods Sold
Gross Profit	$31,250

What is PDI's Gross Margin (gross profit %) (carry to two decimal places)

3)

PDI Schedule of Raw Materials
Account	Dollar Amount
Raw Materials Beginning Inventory	$1,000
Purchases	$4,000
Raw materials available for use	$5,000
Raw Materials Ending Inventory	$2,400
Direct Materials Used (transferred to WIP)	$2,600

Based on your work above for Period 2, compete the Income Statement through Gross Profit for PDI

Do not use the dollar sign ($). Use whole numbers only (no decimal places).

PDI Income Statement
Account	Amount
Sales
Cost of Goods Sold
Gross Profit

4)

PDI Balance Sheet
Account	Amount
Raw Materials Inventory
WIP Inventory
Finished Goods Inventory	$3,150
Total Inventory

 

Answer rating: 100% (QA)

1 Statement of Cost of Goods Manufactured Direct materials used Direct labor 5000 Factory overhead ... View the full answer