Reference no: EM133100748
QUESTION 1 - Slapshot Company makes ice hockey sticks. During the month of June, the company purchased $124,000 of materials. Also during the month of June, Slapshot Company incurred direct labour cost of $168,000 and manufacturing overhead of $229,000. Inventory information is as follows:
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June 1
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June 30
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Materials
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$42,000
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$51,000
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Work in process
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60,000
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71,000
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Required -
1. Calculate the cost of goods manufactured for the month of June.
2. Calculate the cost of one hockey stick assuming that 18,000 sticks were completed during June. Round your answer to the nearest cent.
QUESTION 2 - Slapshot Company makes ice hockey sticks. During the month of June, 18,000 sticks were completed at a cost of goods manufactured of $493,000. Suppose that on June 1, Slapshot had 4,500 units in finished goods inventory costing $160,000 and on June 30, 7,000 units in finished goods inventory costing $215,000.
Required -
1. Prepare a cost of goods sold statement for the month of June.
2. Calculate the number of sticks that were sold during June.
QUESTION 3 - Slapshot Company makes ice hockey sticks and sold 14,000 sticks during the month of June at a total cost of $431,000. Each stick sold at a price of $90. Slapshot also incurred two types of selling costs: commissions equal to 15% of the sales price, and other selling expense of $240,000. Administrative expense totalled $113,000.
Required - Prepare an income statement for Slapshot for the month of June.
QUESTION 4 - Slapshot Company makes ice hockey sticks and sold 20,000 sticks during the month of June at a total cost of $431,000. Each stick sold at a price of $90. Slapshot also incurred two types of selling costs: commissions equal to 15% of the sales price, and other selling expense of $200,000. Administrative expense totalled $118,000.
Required - Prepare an income statement for Slapshot for the month of June and calculate the percentage of sales revenue represented by each line of the income statement.