Problem 1: Robinson Inc.

Robinson, Inc., manufactures custom window frames for large residential constructions. The following data pertain to its operations for the most recent year:

Direct materials beginning inventory	$32,000
Direct materials ending inventory	$24,000
WIP beginning inventory	$94,500
WIP ending inventory	$85,600
Finished goods beginning inventory	$114,150
Finished goods ending inventory	$145,420
Raw materials purchased	$210,000
Direct labor cost	$145,000
Selling and administration expenses	$122,500
Revenues	$725,000

You also know that Robinson, Inc., uses two allocation bases to charge overhead to products. It calculates a rate of 15% of materials cost for materials-related overhead. The rate for all other manufacturing overhead is 125% of direct labor cost.

Required:

a. Calculate the cost of direct materials issued to WIP during the year.

b. Calculate the cost of manufacturing overhead charged to production.

c. Calculate the cost of goods manufactured during the year.

d. Calculate the cost of goods sold during the year.

e. Prepare a GAAP-type income statement.

f. For a particular job order #J016, Robinson informs you that it incurred $6,500 for direct materials costs and $8,600 for direct labor costs. What is the inventoriable cost of this job?

g. Comment on whether the value of the units as reported in the ending inventory account is a good estimate of the products costs for decisions such as setting pricing.