XYZ Company is a manufacturing company that produces and sells furniture. During the year 2022, the company
Question:
XYZ Company is a manufacturing company that produces and sells furniture. During the year 2022, the company had the following transactions:
On January 1, 2022, the company had a beginning balance of $30,000 in its raw materials inventory account.
During the year, the company purchased raw materials on credit for $100,000.
The company used $80,000 worth of raw materials in the manufacturing process during the year.
The company incurred direct labor costs of $60,000 during the year.
The company incurred $20,000 in manufacturing overhead costs during the year.
The company sold 2,000 pieces of furniture during the year for $200 each.
The company paid $10,000 in selling and administrative expenses during the year.
The company's income tax rate for the year was 30%.
Required:
a) Calculate the cost of goods manufactured for the year 2022.
b) Calculate the cost of goods sold for the year 2022.
c) Calculate the gross profit for the year 2022.
d) Calculate the net income for the year 2022.
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan