Mary spent the month of December talking to various suppliers in order to determine her cost structure.
Question:
Mary spent the month of December talking to various suppliers in order to determine her cost structure. She added cost data to the information provided in Table 1.
Mary’s Batter Inc. opened for business on January 1, 2016, as planned. During the month of January, the business purchased and used: these supplies ALL came from ONE supplier
200 pounds of flour
200 pounds of sugar
67 dozen eggs
20 baking soda boxes
200 pounds of butter
100 pounds of raspberries
50 bottles of rum
One box of each for the four other ingredients
Manufacturing overhead is applied to production at $4 per cake. Mary purchased the oven using the start-up capital and paid all salaries. Her nieces worked 300 hours in total for the month. January was a very good month for the bakery since it baked 200 cakes and sold them all for cash. The average selling price was $50 per cake. All manufacturing overhead is closed out at the end of the month. The supplier was also paid at the end of the month.
- Make The Statement of Cost of Goods Manufactured for the month of January 2016
- Make Income Statement for the month of January 2106
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon