Due Date: June 9^th (Covers Chapter 7,8,9 Content) at midnight 12 am.

Question 1:

The following information was taken from the accounting records of Morrisons Company for last year:

Selling expenses

$150,000

Raw materials inventory, January 1^st

100,000

Raw materials inventory, December 31^st

75,000

Utilities, factory

40,000

Direct labor cost

165,000

Depreciation, factory

170,000

Purchases of raw materials

820,000

Sales

2,850,000

Insurance, factory

52,000

Supplies, factory

18,000

Administrative expenses

283,000

Indirect labor

320,000

Maintenance, factory

93,000

Work in process inventory, January 1^st

190,000

Work in process inventory, December 31^st

118,000

Finished goods inventory, January 1^st

273,000

Finished goods inventory, December 31^st

230,000

Management wants to organize these data into a better format so that financial statements can be prepared for the year.

1. Prepare a schedule of cost of goods manufactured.

2. Compute the cost of goods sold.

3. Using data as needed from (1) and (2) above, prepare an income statement.

4. Assuming production of finished and semi-finished goods amounted to 520,500 units for the past year, calculate the cost components of the ending finished good inventory of 60,818 units. When calculating Direct Material, Direct Labor & Manufacturing Overhead per unit please round to two decimal places.