The following selected information was extracted from the 20x1 accounting records of Surgical Products, Inc.: Raw-material-purchases ..............$350,000
Question:
The following selected information was extracted from the 20x1 accounting records of Surgical Products, Inc.:
Raw-material-purchases ..............$350,000
Direct labor .................. 508,000
Indirect labor .................. 218,000
Selling and administrative salaries ......... 266,000
Building depreciation* .............. 160,000
Other selling and administrative expenses ..... 380,000
Other factory costs .............. 688,000
Sales revenue 260 per unit) ............ 2,990,000
*Seventy-five percent of the company’s building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions.
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Required:
1. Calculate Surgical Products’ manufacturing overhead for the year.
2. Calculate Surgical Products’ cost of goods manufactured.
3. Compute the company’s cost of goods sold.
4. Determine net income for 20x1, assuming a 40% income tax rate.
5. Determine the number of completed units manufactured during the year.
6. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change; indirect labor is $221,000 and other factory costs amount to$679,000.
Step by Step Answer:
1 Manufacturing overhead Indirect labor 218000 Building depreciation 160000 x 75 120000 Other factory costs 688000 Total 1026000 2 Cost of goods manuf...View the full answer
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt
