August 2010 inventory and cost data for Petersham Company are as follows: Direct labor .................$182,400 Direct material
Question:
August 2010 inventory and cost data for Petersham Company are as follows:
Direct labor .................$182,400
Direct material purchased ............. 196,300
Direct material used .................... 195,800
Selling and administrative expenses ........ 171,200
Factory overhead ............... 205,700
a. Compute the inventory value for direct materials at August 31, 2010.
b. Compute total product costs for August 2010.
c. Prepare a schedule of cost of goods manufactured for August 2010.
d. Compute cost of goods sold for August 2010.
e. Prepare an income statement for August 2010. Assume that Petersham's income tax rate is 40 percent. Sales for August 2010 were$985,000.
Step by Step Answer:
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn