The company manufactures a single product, cleverly named Product X. The following information is available for...

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The company manufactures a single product, cleverly named Product X. The following information is available for the calendar year 2018 just completed, during which they produced and sold 200,000 units. Sales for the year was $2,400,000. During the year, the company paid a sales commission of 5 percent of sales. The corporate income tax rate was 20%. Direct materials purchases Direct labor Depreciation - factory equipment Depreciation - factory building Depreciation - headquarters building Factory insurance Property taxes: Factory Headquarters Utilities - factory Utilities - sales Administrative salaries Indirect labor salaries Sales office salaries Inventory Information Raw materials Work in process Finished Goods REQUIRED: 1. Post all of the above a summary entries in T accounts. 2. Compute the direct materials used in production. 3. Compute the prime cost. 12/31/2017 12/31/2018 $124,000 $152,000 124,000 109,000 4. Compute the conversion cost. 5. Prepare the Schedule of Direct Materials Used $300,000 140,000 45,000 30,000 50,000 15,000 6. Prepare the Schedule of Cost of Goods Manufactured 7. Prepare the Schedule of Cost of Goods Sold 20,000 18,000 34,000 1,800 150,000 156,000 90,000 130,000 118,904 8. Prepare an income statement for 2018, acceptable for GAAP in good form. 9. How many finished units of Product X do you thing were in the ending FG inventory? The company manufactures a single product, cleverly named Product X. The following information is available for the calendar year 2018 just completed, during which they produced and sold 200,000 units. Sales for the year was $2,400,000. During the year, the company paid a sales commission of 5 percent of sales. The corporate income tax rate was 20%. Direct materials purchases Direct labor Depreciation - factory equipment Depreciation - factory building Depreciation - headquarters building Factory insurance Property taxes: Factory Headquarters Utilities - factory Utilities - sales Administrative salaries Indirect labor salaries Sales office salaries Inventory Information Raw materials Work in process Finished Goods REQUIRED: 1. Post all of the above a summary entries in T accounts. 2. Compute the direct materials used in production. 3. Compute the prime cost. 12/31/2017 12/31/2018 $124,000 $152,000 124,000 109,000 4. Compute the conversion cost. 5. Prepare the Schedule of Direct Materials Used $300,000 140,000 45,000 30,000 50,000 15,000 6. Prepare the Schedule of Cost of Goods Manufactured 7. Prepare the Schedule of Cost of Goods Sold 20,000 18,000 34,000 1,800 150,000 156,000 90,000 130,000 118,904 8. Prepare an income statement for 2018, acceptable for GAAP in good form. 9. How many finished units of Product X do you thing were in the ending FG inventory?

Answer rating: 100% (QA)

SOLUTION 1 Raw Materials Debit 124000 beginning balance Credit 152000 purchases 2 Work in Process De... View the full answer