The MNO Company manufactures pencils. Last year, direct materials costing $800,000 were put into production. Direct labor
Question:
The MNO Company manufactures pencils. Last year, direct materials costing $800,000 were put into production. Direct labor of $400,000 was incurred and overhead equaled $1,000,000. The company had operating income for the year of $100,000 and manufactured and sold 4,000,000 pencils at a sales price of $0.70 per unit. Assume that there were no beginning or ending inventory balances in the work in process and finished goods inventory accounts.
Required:
A. | Compute the per-unit product cost |
B. | Compute the per-unit prime cost |
C. | Compute the per-unit conversion cost |
D. | Compute the gross margin for the year |
E. | Compute the selling and administrative expenses for the year |
F. | Assume production amounted to 4,000,000 pencils and 3,800,000 were sold. Compute cost of goods sold. |
G. | Assume production amounted to 4,000,000 pencils and 3,800,000 were sold. Compute the balance in ending finished goods inventory. |
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer