Omira Cycle Parts manufactures components for motorcycle and off-road vehicles. The company's administrative and manufacturing operations...
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Omira Cycle Parts manufactures components for motorcycle and off-road vehicles. The company's administrative and manufacturing operations share the company's only building. Eighty percent of the building is used for manufacturing, and the remainder is used for administrative activities. Indirect labor is 8 percent of direct labor. As the cost analyst at Omira, you have gathered the following information for the year ended December 31: Administrative salaries Attorney fees to settle zoning dispute Building depreciation (manufacturing portion only) Cost of goods manufactured Direct materials inventory, December 31 Direct materials purchased during the year Direct materials used Distribution costs Finished goods inventory, January 1 Finished goods inventory, December 31, Insurance (on plant machinery) Maintenance (on plant machinery) Marketing costs Other plant costs Plant utilities Sales revenue Taxes on manufacturing property Total (direct and indirect) labor Work-in-process inventory, January 1 Work-in-process inventory, December 31 Required: a. Prepare a cost of goods manufactured and sold statement. b. Prepare an income statement. $ 967,000 121,800 914,200 13,951,700 1,247,000 5,047,000 5,356,400 23, 100 1,127,000 1,267,000 273,000 176,400 525,000 417,800 527,800 22,757,000 201,000 6,066,900 369,600 351,400 Omira Cycle Parts manufactures components for motorcycle and off-road vehicles. The company's administrative and manufacturing operations share the company's only building. Eighty percent of the building is used for manufacturing, and the remainder is used for administrative activities. Indirect labor is 8 percent of direct labor. As the cost analyst at Omira, you have gathered the following information for the year ended December 31: Administrative salaries Attorney fees to settle zoning dispute Building depreciation (manufacturing portion only) Cost of goods manufactured Direct materials inventory, December 31 Direct materials purchased during the year Direct materials used Distribution costs Finished goods inventory, January 1 Finished goods inventory, December 31, Insurance (on plant machinery) Maintenance (on plant machinery) Marketing costs Other plant costs Plant utilities Sales revenue Taxes on manufacturing property Total (direct and indirect) labor Work-in-process inventory, January 1 Work-in-process inventory, December 31 Required: a. Prepare a cost of goods manufactured and sold statement. b. Prepare an income statement. $ 967,000 121,800 914,200 13,951,700 1,247,000 5,047,000 5,356,400 23, 100 1,127,000 1,267,000 273,000 176,400 525,000 417,800 527,800 22,757,000 201,000 6,066,900 369,600 351,400
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Answer rating: 100% (QA)
To prepare the cost of goods manufactured and sold statement we need to calculate various cost components Heres the breakdown a Cost of Goods Manufactured Statement Cost of Goods Manufactured Direct M... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
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