Sabre Corporation is a furniture manufacturer, selling its products to local builders in the Southwestern Ontario...
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Sabre Corporation is a furniture manufacturer, selling its products to local builders in the Southwestern Ontario market. Required: Using the 20X1 data provided in the table below, 1. Prepare an income statement (8 marks) with a separate supporting schedule of cost of goods manufactured (8 marks). 2. For all manufacturing items, classify costs as direct costs or indirect costs and indicate by V or F whether each is a variable cost or a fixed cost (when the cost object is a product unit). If in doubt, decide based on whether the total cost will change substantially over a wide range of units produced. (4 marks) Sandpaper costs Materials handling cost Cost of lubricants for machinery Indirect manufacturing labor cost Direct manufacturing labor cost Direct materials inventory - Jan 01, 20X1 Direct materials inventory - Dec 31, 20X1 Work-in-process inventory - Jan 01, 20X1 Work-in-process inventory - Dec 31, 20x1 Finished goods inventory - Jan 01, 20X1 Finished goods inventory - Dec 31, 20X1 Factory leasing cost Factory machinery depreciation Factory premises property taxes Factory premises fire insurance $2,000 $70,000 $5,000 $40,000 $300,000 $40,000 $50,000 $10,000 $14,000 $100,000 $150,000 $54,000 $36,000 $4,000 $3,000 Page 2 Direct materials purchased Sales Advertising Marketing personnel salaries Distribution costs Customer service representatives' salaries $460,000 $1,360,000 $60,000 $100,000 $70,000 $100,000 Sabre Corporation is a furniture manufacturer, selling its products to local builders in the Southwestern Ontario market. Required: Using the 20X1 data provided in the table below, 1. Prepare an income statement (8 marks) with a separate supporting schedule of cost of goods manufactured (8 marks). 2. For all manufacturing items, classify costs as direct costs or indirect costs and indicate by V or F whether each is a variable cost or a fixed cost (when the cost object is a product unit). If in doubt, decide based on whether the total cost will change substantially over a wide range of units produced. (4 marks) Sandpaper costs Materials handling cost Cost of lubricants for machinery Indirect manufacturing labor cost Direct manufacturing labor cost Direct materials inventory - Jan 01, 20X1 Direct materials inventory - Dec 31, 20X1 Work-in-process inventory - Jan 01, 20X1 Work-in-process inventory - Dec 31, 20x1 Finished goods inventory - Jan 01, 20X1 Finished goods inventory - Dec 31, 20X1 Factory leasing cost Factory machinery depreciation Factory premises property taxes Factory premises fire insurance $2,000 $70,000 $5,000 $40,000 $300,000 $40,000 $50,000 $10,000 $14,000 $100,000 $150,000 $54,000 $36,000 $4,000 $3,000 Page 2 Direct materials purchased Sales Advertising Marketing personnel salaries Distribution costs Customer service representatives' salaries $460,000 $1,360,000 $60,000 $100,000 $70,000 $100,000
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To prepare the income statement and the schedule of cost of goods manufactured we need to gather and classify the relevant costs Based on the given da... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0132928939
7th edition
Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay
Posted Date:
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