For Specific Date

Direct materials, January 1, 2022 $15

Work-in-process, January 1, 2022 10

Finished goods, January 1, 2022 70

Direct materials, December 31, 2022 20

Work-in-process, December 31, 2022 5

Finished goods, December 31, 2022 55

For Year 2022

Purchased of direct materials $390

Direct manufacturing labour 120

Depreciation-plant building and equipment 96

Plant supervisory salaries 6

Miscellaneous plant overhead 42

Revenues 1140

Marketing, distribution, and customer service coasts 288

Plant supplies used 12

Plant Utilities 36

Indirect manufacturing labour 60

Required: Prepare a statement of comprehensive income and supporting schedule of cost of goods manufactured for the year ended December 31, 2022

Problem 2

Required:

1. How would the answer to the preceding problem be modified if you were asked for a schedule of cost of goods manufactured and sold instead of schedule of cost of goods manufactured? Be specific
2. Would the sales manager's salary (included in marketing, distribution, and customer-service costs) be accounted for differently if the corporation were merchandising company instead of manufacturing company? Describe how the wages of an assembler in the plant would be accounted for in this manufacturing company.
3. Plant supervisory salaries are usually regarded as indirect manufacturing costs. Under what conditions might some of these costs be regarded as direct manufacturing costs? Give example
4. Suppose that the direct materials used and the plant depreciation were related to the manufacture of 1 million units of product. What is the unit cost for the direct materials assigned to those units? What is the unit cost for plant building and equipment depreciation? Assume that yearly plant depreciation is computed on a straight-line basis.
5. Assume that the historical, actual cost-behaviour patterns in requirement 4 persist- that is, direct materials costs behave as a variable cost and depreciation behaves as fixed cost. Repeat the computations in requirement #4, assuming that the costs are being predicted for the manufacture of 1.2 million units of product. How would the total costs be affected?
6. As a management account, explain concisely to the president why unit costs in differed in requirement 4 and 5.

Unit cost for direct materials, $385